The Consultative Group to Assist the Poor (CGAP) today issued this list of publications recently posted on its website:
MFI Capital Structure Decision Making: A Call for Greater Awareness
CGAP
Microfinance: An Emerging Asset Class for Equity and Debt Investors
MicroCapital
The latest issue of the CGAP-MCM Newsletter announced that the Russian microfinance bank Forus Bank recently received a USD 1 million loan from responsAbility Global Microfinance Fund of Switzerland. As of November 2006, the fund’s position in Forus Bank was the largest it had in any single institution, composing 3.2% of its portfolio, totaling USD 2.5 million. It originally provided the bank with a USD 2 million loan in October 2005.
The CGAP-MCM Newsletter recently reported that FINCA International LLC, Russia (ZAO FINCA) received a USD2 million loan from the reponsAbility Global Microfinance Fund. The investment in FINCA Russia was the fund’s first transaction in Russian rubles and currently composes 2.5% of the funds portfolio. Previously, the fund has also invested in two other Russian microfinance institutions (MFIs), the Russian Women’s Microfinance Network (RWMN) and FORA.
responsAbility Global Microfinance Fund loaned $2,902,000 to microfinance institutions in Eastern Europe and Central Asia. responsAbility, established in 2003 under Luxembourg law, is classified as a private investor and open-ended investment fund. In July 2006, it reported a total fund volume of $70.2 million as well as microfinance and free trade investments of $65.5 million. MicroCapital recently reported on responsAbility’s $800,000 investment in BlueOrchard Loans for Development.
In addition to its recent $900,000 investment in FINCA Azerbaijan, responsAbility Global Microfinance Fund loaned over $1 million to microfinance institutions in Eastern Europe. responsAbility, established in 2003 under Luxembourg law, is classified as a private investor and open-ended investment fund. In May 2006, it reported a total fund volume of $57 million and microfinance investments of $53 million.
Headquartered in
In 2003, Credit Suisse co-founded the responsAbility Global Microfinance Fund along with Raiffeisen Banking Group, Baumann & Cie Banquiers, and the Andromeda Fund. This fund provides investors with a combination of moderate financial returns coupled with social benefits. responsAbility loans between $50,000 and $1.5 million to MFIs for a maximum of 5 years at a rate equal to “LIBOR plus full cost plus full risk.” As of March 31, 2006 the fund’s total assets reached $50 million with over $45 million allocated to microfinance investments. In addition, investment advisory services to the responsAbility Fund are provided by BlueOrchard, IPC/ProCredit, FINCA International, Symbiotics, Opportunity International, and PlaNet Finance.
Additional Resources
1. ING “A Billion to Gain? A study on global financial institutions and microfinance,” February, 2006
2. ResponsAbility
3. MIX Market: “responsAbility”4. MIcrocapital Blog: “Best in Class Just Keeps Getting Better: Swiss responsAbility Microfinance Investment Fund Lends $1,755,095 to German ProCredit Holding.” February 16, 20065. Microcapital Blog: “Microfinance Investment Funds Ranked by Size and Microcredit Allocation” January 13, 20066. Microcapital Blog: “ResponsAbility Global Microfinance Fund Investing More than $7m in 11 Microfinance Institutions in Jordan, Benin, Ecuador, Nicaragua, Bosnia and Herzegovina, and Peru” January 6, 2006
7. Credit Suisse
The responsAbility Global Microfinance Fund, ProCredit’s first private investor, augmented its stake in the holding company with loan of $1,755,095. Information on the duration of the loan is not publicly available.
Swiss-based ResponsAbility Global Microfinance Fund was founded in 2003 by Swiss financial institutions Credit Suisse, which is also the fund manager, Raiffeisen Banking Group, Baumann & Cie Banquiers, and the Andromeda Fund. Investment advisory services to the ResponsAbility Fund are provided by: Alterfin, BlueOrchard Finance, IPC/ProCredit Holding, FINCA International, Symbiotics, Opportunity International, and PlaNet Finance. ResponsAbility loans between $50,000 and $1.5 million to MFIs for a maximum of 5 years at a rate equal to “LIBOR plus full cost plus full risk.” The Fund’s total assets amounted to just over $45 million as of January 2006 with over $43 million allocated to microfinance investments.
Established in 1998 as the leader and main shareholder of the ProCredit Group, which consists of 19 microbanks with microcredit programs in different countries, ProCredit Holding controls its subsidiaries closely, their website stressing investment in training and professional development. The ProCredit group had approximately å¥1.9 billion in total assets and a total loan portfolio of å¥1.3 billion as of October 2005. To date, the 19 microbanks have made about 526,000 loans to microentrepreneurs and small businesses, approximately 90% of which are under å¥10,000 and about 50% of which are below å¥1,000. ProCredit Holding reports its Return on Average Assets as of December 2004 2.4% and its Return on Average Equity as 19.5 %. ProCredit continues to distant itself from the micro-bank pack.