Triodos Investment Management, a subsidiary of financial service provider Triodos Bank of the Netherlands, recently announced that it has sold the majority of its 13.5% equity stake in TenGer Financial Group, a Mongolia-based microfinance institution, through its Triodos-Doen and Triodos Fair Share Funds [1]. Triodos sold the shares to Orix Corporation, a Japan-based financial services group; International Finance Corporation, a member of the US-based World Bank Group; and the Mongolyn Alt Group, a Mongolian mining company. Further details on the sale have not been released.
As of December 31, 2011, Triodos holds four funds with combined assets of USD 442 million that provide financing to 95 institutions in 43 countries. At fiscal year-end 2012, IFC reports 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent. As of 2013, Orix operates in 34 countries and has USD 85.4 billion total assets. As of 2011, TenGer Financial Group reports total consolidated assets of MNT 837 billion (USD 605 million).
By Megan McGowan, Research Associate
About Triodos Investment Management:
Triodos Investment Management manages funds that invest in financial sector development in developing countries, renewable energy and venture capital. Among these are four microfinance investment funds: the Hivos-Triodos Fund, the Triodos-Doen Foundation, the Triodos Fair Share Fund and Triodos Microfinance Fund. As of December 31, 2011, these four funds had total assets of USD 442 million. The four funds collectively provide finance to 95 different institutions in 43 countries.
About International Finance Corporation:
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. At fiscal year-end 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent.
Orix Corporation:
Orix Corporation is a Japan-based financial services group that provides corporate products including leases, loans, automobile operations, retail operations, real estate, life insurance, and banking and loan services. As of 2013, it operates in 34 countries. As of September 2013, Orix has USD 85.4 billion total assets.
About TenGer Financial Group:
TenGer Financial Group of Mongolia was created by the 2001 merger of Goviin Ehlel and XAC, two non-bank financial institutions that served micro-, small and medium-sized enterprises. TenGer Financial Group is the parent company of XacBank LLC, XacLeasing LLC, Horus Nomadic Solutions LLC and TenGer Insurance LLC. TenGer Financial Group is owned by local and international investors including EIT Capital Management LLC, the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), Mercy Corps, Triodos Bank Group, BlueOrchard Private Equity Fund and several local nongovernmental organizations (NGOs). As of 2011, TenGer Financial Group reported total consolidated assets of MNT 837 billion (USD 605 million).
Sources and Additional Resources:
[1] Triodos Bank Press Release sent directly to MicroCapital
MicroCapital Article, “Triodos Bank Launches Sustainable Pioneer, Sustainable Equity Retail Funds,” May 13, 2013, https://www.microcapital.org/microcapital-brief-triodos-bank-launches-sustainable-pioneer-sustainable-equity-retail-funds/
MicroCapital Article,“ Triodos Bank Loans $3.7m to Prizma of Bosnia and Herzegovina to Expand its Microfinance Operations,” July 17, 2012, https://www.microcapital.org/microcapital-brief-triodos-bank-loans-3-7m-to-prizma-of-bosnia-and-herzegovina-to-expand-its-microfinance-operations/
MicroCapital Article, “Mongolia: International Finance Corporation (IFC) Capitalization Fund Invests $40m in Microfinance Institution XacBank,” July 11, 2012, https://www.microcapital.org/microcapital-brief-mongolia-international-finance-corporation-ifc-capitalization-fund-invests-40m-in-microfinance-institution-xacbank/
MicroCapital Universe Profile: International Finance Corporation (IFC):
MicroCapital Universe Profile: Orix, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Orix
MicroCapital Universe Profile: TenGer Financial Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=TenGer+Financial+Group
MicroCapital Universe Profile: Triodos Investment Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triodos+Investment+Management
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