MICROCAPITAL BRIEF: VisionFund Selling Georgian Microfinance Institution (MFI) Credo to Impact Investors AccessHolding, responsAbility, Triodos

VisionFund International, a subsidiary of US-based, Christian NGO World Vision International, recently received approval from the National Bank of Georgia to sell its stake in Microfinance Organization Credo, LLC (Credo), to “a consortium of social impact investors” including Access Microfinance Holding AG (AccessHolding), a holding company based in Germany that specializes in microfinance investments; responsAbility Investments AG (responsAbility), a company based in Zurich that primarily invests in developing economies; and Triodos Investment Management BV (Triodos), a subsidiary of Netherlands-based Triodos Bank. Additional information regarding the terms of the deal, including the sum received by VisionFund, and the sizes of the stakes to be held by the new owners, are not publicly available.

According to Scott Brown, the president and CEO of Visionfund, “the sale of Credo is in line with VisionFund’s strategy, announced in 2011, in which we pledged to refocus our resources in Africa, Asia and Latin America in order to improve the lives of 3.5 million children annually by 2015.”

As of 2012, Credo, which does not accept deposits, reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 108.7 million, a gross loan portfolio of USD 96.3 million and approximately 95,464 active borrowers. World Vision raised USD 2.79 billion in cash and in-kind gifts during 2011 and served approximately 100 countries as of 2013. As of 2013, VisionFund has a loan portfolio of USD 390 million helping 830,000 small businesses in 36 countries. As of June 2013, AccessHolding reported total assets of USD 1 billion from operations in eight countries. As of March 2014, responsAbility reported approximately USD 2 billion in total assets under management. As of 2012, Triodos manages 19 funds and has EUR 2.2 billion (USD 2.9 billion) in total assets under management.

By Makai McClintock, Research Associate

About World Vision International
World Vision is a US-based, Christian humanitarian organization dedicated to working with children, families and their communities worldwide to address the causes of poverty and injustice. World Vision serves poor people worldwide regardless of religion, race, ethnicity or gender. The organization operates microfinance institutions through its subsidiary VisionFund International. World Vision raised USD 2.79 billion in cash and in-kind gifts during 2011 and served approximately 100 countries as of 2013.

About VisionFund International
VisionFund, a US-based nonprofit organization, offers financial services to families living in poverty in the developing world through a network of microfinance institutions in 36 countries in Asia, Africa, Eastern Europe, Latin America and the Caribbean, and the Middle East. Its services include loans as well as business training and support. VisionFund is part of US-based World Vision, a Christian relief, development and advocacy organisation. As of 2013, VisionFund has a loan portfolio of USD 390 million serving 830,000 small businesses.

About Credo
Microfinance Organization Credo, LLC (Credo) is a microfinance institution (MFI) that was established in 1997 in Tbilisi, Georgia. As of 2012, Credo reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 108.7 million, a gross loan portfolio of USD 96.3 million and approximately 95,464 active borrowers. The organization does not accept deposits.

About Access Microfinance Holding AG (AccessHolding)
Access Microfinance Holding AG (AccessHolding) was established in 2006 in Germany by LFS Financial Systems GmbH (LFS). It invests in microfinance institutions (MFIs) and aims to develop its investments through equity finance, holding services and management services rendered by LFS, which acts as its technical partner. AccessHolding establishes new MFIs together with external partners and transforms existing non-bank microlending institutions into microfinance banks that offer a wider range of services such as deposits.

AccessHolding is a joint-stock company with committed capital of EUR 26.4 million (USD 37 million). As of December 2013, AccessHolding has investments in AccesBanque Madagascar (55.2-percent share); AccessBank Azerbaijan (16.5-percent share); AccessBank Tanzania (52.7-percent share); AB Microfinance Bank Nigeria Limited (50.1-percent share); AccessBank Liberia (55.6-percent share); and AccessBank Tajikistan (62.4-percent share); AB Bank Zambia (51.0-percent); and AB Bank Rwanda (50.5-percent). As of June 2013, AccessHolding reported total assets of USD 1 billion.

About responsAbility
Founded in 2003, responsAbility Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. ResponsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue. As of March 2014, responsAbility reported total assets under management of approximately USD 2 billion.

About Triodos Investment Management
Triodos Investment Management manages funds in a range of sectors including financial sector development in developing countries, renewable energy finance and venture capital. As of 2012, Triodos Investment Management manages 19 funds and has EUR 2.2 billion (USD 2.9 billion) in total assets under management. Combined, these funds finance approximately 100 MFIs in approximately 45 countries.

Sources and Additional Resources:

AccessHolding Press Release sent to MicroCapital, “Announcement of new ownership of Credo, the leading microfinance organization in Georgia.”

MicroCapital, August 14, 2014, India’s ESAF Microfinance and Investment Issues $7.8m In Non-Convertible Debentures (NCDs) to Triodos

MicroCapital, April 9, 2014: responsAbility Investments Lends $4m to Opportunity International Bank of Malawi

MicroCapital, February 13, 2014: responsAbility Loans $20m to Microlender Enda Inter-Arabe of Tunisia

MicroCapital Universe Profile: World Vision International,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=World+Vision

MicroCapital Universe Profile: VisionFund International,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+International

MicroCapital Universe Profile: LLC MFO Credo, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LLC+MFO+Credo

MicroCapital Universe Profile, Access Microfinance Holding AG (AccessHolding), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Access+Microfinance+Holding+AG+%28AccessHolding%29

MicroCapital Universe Profile: responsAbility Investments AG,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital Universe Profile: Triodos Investment Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triodos+Investment+Management

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