by the MicroCapital Team -

MICROCAPITAL STORY: Incofin Announces Creation of Rural Impulse Fund, an Investment Fund to Target Rural Microfinance; BIO, EIB, IFC, FMO Invest

Incofin is a social investment company based out of Antwerp, Belgium that specializes in microfinance investment in developing countries. Its two core activities are direct investments in microfinance through loans, stock participations and guarantees; and fund management. In this capacity, Incofin currently manages Impulse Microfinance Investment Fund, the first private Belgian commercial microfinance investment fund, and the microfinance investments of Volksvermogen, a Belgian investment fund.

Incofin announces the creation of a new investment fund to target rural microfinance institutions (MFIs), the Rural Impulse Fund (RIF). Specifically, as fund advisor, Incofin will guide the RIF to make equity and debt investments in rural MFIs (see IFC’s RIF summary). The RIF aims to increase the supply of rural microfinance by extending commercial funding and strengthening the financial structure of MFIs which have both successfully provided financial services to rural poor and been financially sustainable. “Rural MFIs will be selected on the basis of a methodology, measuring the presence of the MFIs’ points of sales in rural areas. RIF will invest in financially sustainable MFIs, which, moreover, outperform in terms of outreach and social performance,” says Geert Peetermans, Chief Investment Officer at Incofin.

by the MicroCapital Team -

Belgian Impulse Microfinance Investment Fund (Incofin) Purchases a 10% Capital Share of Bolivian Microfinance Institution FIE and Makes Loans to Uganda Microfinance Limited and Sinapi Trust, Ghana

Another story courtesy of the CGAP/MIX Capital Markets newsletter. The Belgium-based Impulse Microfinance Investment Fund (Incofi) invested USD 1.4 mn in the Bolivian microfinance institution (MFI) Fondo Financiero Privado para el Fomento a Iniciativas Economicas ( through a purchase of a ten percent share in their capital stock. FIE was founded in 1985 to be an equitable and inclusive financial institution for micro and small entrepreneurs in Bolivia. In addition to short medium and long term loans it offers a venue for voluntary savings, fund transfer services, and training and consulting for micro and small businesses. According to MIX market, the microfinance information clearinghouse, FIE had a gross loan portfolio of USD 101 mn at the end of 2006 and USD 129 mn in total assets during the same period.
Continue reading “Belgian Impulse Microfinance Investment Fund (Incofin) Purchases a 10% Capital Share of Bolivian Microfinance Institution FIE and Makes Loans to Uganda Microfinance Limited and Sinapi Trust, Ghana”

by the MicroCapital Team -

Tajikistan-Based Eskhata Bank received a USD 1 mn Loan from Belgian Impulse Microfinance Investment Fund (Incofin)

The Belgium-based Impulse Microfinance Investment Fund (Incofin) provided a USD 1 mn loan to the Tajikistani microfinance institution (MFI) Eskhata Bank. Eskhata is an open joint-stock company in Tajikistan with 51-60 percent of it business coming from microfinance, according to MIX market, the microfinance information clearinghouse. As of 31 December 2005, its gross loan portfolio was approximately USD 4.9 mn with USD 13.3 mn in total assets. Its deposits to loan ratio is 111.78% and its capital/asset ratio is 36.9%.

Continue reading “Tajikistan-Based Eskhata Bank received a USD 1 mn Loan from Belgian Impulse Microfinance Investment Fund (Incofin)”

by the MicroCapital Team -

Belgian Commercial Bank VDK Savings Bank Begins Microfinance Operations through Belgian Investment Firm Incofin

VDK Savings Bank of Belgium began microfinance operations through Incofin, a Belgian social investment firm with experience in microfinance. Incofin advises VDK Savings Bank in the development of their VDK MFI Loan Portfolio, worth the equivalent of USD 45.9 mn, which now lends directly to microfinance institutions (MFIs) in Latin America and Central Asia. VDK is the first Belgian commercial bank to feature direct lending to MFIs.

Continue reading “Belgian Commercial Bank VDK Savings Bank Begins Microfinance Operations through Belgian Investment Firm Incofin”

by the MicroCapital Team -

Belgian ACV Metaal Extends USD 1.28 Million Credit Line to Belgian Microfinance Investment Fund Incofin

According to the most recent addition of the MCM newsletter, the Belgian microfinance investment fund Incofin received a USD 1.28 million line of credit from ACV Metaal-CSC Métal (in French), the Confederation of Christian Trade Unions of Metalworkers of Belgium.

Continue reading “Belgian ACV Metaal Extends USD 1.28 Million Credit Line to Belgian Microfinance Investment Fund Incofin”

by the MicroCapital Team -

Uganda Microfinance Limited Recipient of $240,000 Credit Line from Incofin

Another deal coming to us this month courtesy of the CGAP-MIX Capital Markets MCM Newsletter, Uganda Microfinance Limited (UML) recently received a $240,000 line of credit from Incofin. UML was established in 1997 as a commercial microfinance institution by a local Ugandan and an American citizen. According to year end 2005 data from Microfinance Information eXchange (MIX), it has 31,145 clients who have taken out loans totaling $11.3 million. In addition, it has total assets worth $16.5 million, return on assets of 4%, and a debt to equity ratio of 295%.

Continue reading “Uganda Microfinance Limited Recipient of $240,000 Credit Line from Incofin”

by the MicroCapital Team -

Microfinance Institution Kenya Women Finance Trust Receives $600,000 Line of Credit from Incofin

Another deal coming to us this month courtesy of the CGAP-MIX Capital Markets MCM Newsletter, the Kenya Women Finance Trust (KWFT) received a $600,000 line of credit from Incofin. KWFT is a microfinance institution based in Nairobi, Kenya, and was founded in 1982. It provides loans to women by forming groups of borrowers, or Kiwas, which promote loan repayment. According to year end 2005 data from the Microfinance Information eXchange (MIX), KWFT has 62,790 borrowers and a total loan portfolio of $20.1 million. In addition, it has assets of $33.1 million, debt to equity at 211% and return on assets of 3.61%.

Continue reading “Microfinance Institution Kenya Women Finance Trust Receives $600,000 Line of Credit from Incofin”

by the MicroCapital Team -

Incofin Purchases Shares worth ARS 1 million from FIE Grand Poder of Argentina in Microfinance Investment Deal

Incofin is a Belgian co-operative founded in 1992. As of year end 2005, Incofin reported fund assets of $5.6 million with $4.5 million allocated to microfinance investments. Incofin’s recent purchase of shares worth 1 million Argentine Pesos (equivalent to US$325,400) from FIE Grand Poder follows another recent purchase from Peru’s Edpyme Confianza (see Microcapital Blog August 24, 2006).
Continue reading “Incofin Purchases Shares worth ARS 1 million from FIE Grand Poder of Argentina in Microfinance Investment Deal”

by the MicroCapital Team -

Impulse Microfinance Investment Fund, Managed by Incofin, Makes USD $1 Million Debt Investment in Pro Mujer Bolivia

Private investor Impulse Microfinance Investment Fund loaned $1 million to non-profit Pro Mujer Bolivia, member of the ProMujer network operating in Bolivia, Peru, Nicaragua, and Mexico (see list and definition of microfinance networks here).
Continue reading “Impulse Microfinance Investment Fund, Managed by Incofin, Makes USD $1 Million Debt Investment in Pro Mujer Bolivia”

by the MicroCapital Team -

Incofin Loans USD $500,000 Total to Microfinance Institutions (MFI’s) PRESTANIC in Nicaragua and FADES in Bolivia

Both MFI’s PRESTANIC (Asociación fondo Nicaraguense para el Desarrollo Comunitario) and FADES (Fundación para Alternativas de Desarrollo) received $250,000 loans from private investor fund Incofin.
Continue reading “Incofin Loans USD $500,000 Total to Microfinance Institutions (MFI’s) PRESTANIC in Nicaragua and FADES in Bolivia”

by the MicroCapital Team -

Belgian Incofin Makes Over $400,000 Microfinance Investment, Buying Shares in Peruvian Edypme Confianza and Lending over $300,000 Investment in Nigerian Lift Above Poverty Organisation (LAPO)

Edypme Confianza, a Peruvian microfinance institution (MFI) created in 1997 to provide microfinance services to entrepreneurs and small producers, sold shares worth $405,280 to Incofin. Initially, Confianza was primarily an agriculture lender, but changed its lending practices in 2002 and expanded its portfolio to include urban and individual loans. This MFI had $17 million in total assets, over 17,000 active borrowers, and a loan portfolio of $13.7 million at the close of 2004. Edypme Confianza also reported total equity at $3 million, return on assets (ROA) as 1.3%, return on equity (ROE) as 7.2%, a debt to equity ratio of 465%, and a 6.7% profit margin at the end of 2004. According to an Inter-American Development Bank (IADB) survey based on number of loans outstanding in Latin America, Edypme Confianza was ranked 53rd overall and 12th within Peru.

Incepted in Belgium in 1992, Incofin invests in MFIs in 16 countries, and in mid-2005 had total assets of $5.6 million. The duration of Incofin’s loans, which are between $120,000 and $600,000, is five years, and the terms offered are “LIBOR plus full cost plus full risk”. Shareholders include both corporations and private individuals and Incofin invests in equity, quasi-equity, debt securities and guarantees. Although Incofin does not provide a return, it has the objective of maintaining the initial value of the shareholders’ investments.

Incofin also provided Nigerian-based Lift Above Poverty Organisation (LAPO) with a $306,000 loan. LAPO is an African NGO established in 1987 with a mission “to promote economic empowerment through financial services on sustainable basis.” In September, 2003 LAPO reported a loan portfolio of $1.2 million and total assets just under $2 million.

Continue reading “Belgian Incofin Makes Over $400,000 Microfinance Investment, Buying Shares in Peruvian Edypme Confianza and Lending over $300,000 Investment in Nigerian Lift Above Poverty Organisation (LAPO)”

by the MicroCapital Team -

Belgian Investment Company Incofin Invests Over å¥1.5 Million in Three Microfinance Institutions (Fundación ESPOIR, FINCA Kosovo, EDPYME Confianza)

Belgium investment company Incofin has invested å¥250,000 in Ecuadorian microfinance institution (MFI) Fundación ESPOIR, while Incofin’s Impulse Microfinance Investment Fund has invested å¥1 million in FINCA Kosovo, and å¥500,000 into Peruvian MFI EDPYME Confianza.
Continue reading “Belgian Investment Company Incofin Invests Over å¥1.5 Million in Three Microfinance Institutions (Fundación ESPOIR, FINCA Kosovo, EDPYME Confianza)”

by the MicroCapital Team -

SPECIAL REPORT: Positioning MFIs to Access Climate Finance – An Interview with Kwashie Agbitor of Accion

A seat next to Kwashie Agbitor (pictured below) was one of the most highly sought-after spots at SAM 2023 in Togo in October. Mr Agbitor has 20 years of experience in Africa and Asia, improving branch oper­ations, credit appraisals, risk management, methodology auditing, prod­uct development, client protection and social performance management.

At SAM 2023, Mr Agbitor moderated a discussion titled “Climate funds, an opportunity for financial in­stitutions to scale up sustainable and inclusive financing.” The panelists rep­resented the Tunisian microfinance insti­tution (MFI) Enda Tamweel, the Belgian im­pact investment firm Incofin, the Ken­yan microlender Juhudi Kilimo and the French impact investor Solidarité Inter­nationale pour le Développement et l’Investissement (SIDI).

Bob Summers: How can financial services providers (FSPs) work with climate funds to expand their green lending portfolios?
Kwashie Agbitor: There are numerous opportunities for financial institutions to build their green portfolios with climate funds. Financial institutions can leverage equity, debt and quasi-equity sources of funding from various types of organiza­tions. Climate funds can be used to devel­op and deploy financial services that support the adoption of green products/solutions and help people recover from climate-re­lated shocks. Given their nature, most climate funders also pro­vide technical support/assistance in addition to funding.

BS: What factors influence whether a climate fund would invest in a particular MFI?
KA: Firstly, the MFI and the investor must

by the MicroCapital Team -

SPECIAL REPORT: Let’s Channel Climate Finance to Those on the Climate Front

Climate finance is hot, and right­fully so. The threat is real, and the needs are towering. The good news is that there are investible solutions out there. As with any new field, the development of climate finance has been accompanied by a range of standards, taxon­omies and met­rics. For climate mitigation, a clear consensus seems to be emerging on emissions reductions as the preferred metric to be tracked by investors, however the jury is still out on the ideal standards for tracking the impact of climate adaptation, and it is only starting to deliberate on resilience projects.

This difference in the pace of development of climate mitigation and adaptation standards has led to an unintended consequence: that the story of climate finance today is the story of climate mitigation. Less than 10 percent of all climate finance today goes to adaptation and resilience. This happens not because mitigation is more important than adaptation, but because the impact of mitigation projects is easier to track than that of adaptation projects. Simply put: what gets measured, gets managed.

The problem with too narrow of a focus on climate mitigation is that it does not take into account the fact that climate change is a challenge of livelihoods and social justice as much as it is an environmental chal­lenge, especially for low-income populations and other vulnerable com­muni­ties in the global South. Because climate change is not gender neu­tral, applying a gender (or JEDI for Justice, Equity, Diversity) approach to investments can

by Rohit Dayanand -

MICROCAPITAL BRIEF: DFIs Invest $109m in Horizon Capital IV to Support SMEs in Ukraine, Moldova

Six public-sector organizations recently invested in the second funding round of Horizon Capital IV with the goal of enabling the equity fund to supply more working capital to “fast-growing, technology-enabled small and medium-size businesses” in Ukraine and Moldova. The fund also seeks to

by the MicroCapital Team -

SPECIAL REPORT: Solar-powered Onions in Senegal, Meso-insurance Against Storms in Nicaragua, Performance-based Interest Rate Reductions for Climate-smart Lending in India

e-MFP logoIn a session on strengthening agricultural value chains today at European Microfinance Week, Daphne van Dam of Cordaid described her organization’s work to support onion farmers in Senegal. The farmers were struggling with the cost of fuel for irrigation. Cordaid was able to partner with local microfinance and solar providers to supply farmers with solar-powered irrigation systems that they could pay for on a schedule attuned to the harvest time of their crop.

Magdalena Arbelaez of Incofin described her firm’s work enabling insurance for farmers in Nicaragua. Rather than microinsurance, which would have been unworkable for many of the smallholder farmers in the region, the project extended