MICROCAPITAL BRIEF: Asian Credit Fund of Kazakhstan Raises Equity from Employee-Owned Karavella, Base of the Pyramid Asia (BOPA)

Asian Credit Fund (ACF), a microfinance institution (MFI) based in Kazakhstan, recently informed MicroCapital that it has raised an undisclosed amount of cash through a second round of equity financing.The new equity was raised from existing shareholder Base of the Pyramid Asia (BOPA), a Singapore-based equity investor in small Asian MFIs, and new investor Karavella Invest, a Kazakh investor created by ACF employees for the purpose of making this purchase. BOPA and Karavella Invest now hold 47 percent and 2 percent of ACF shares, respectively. Mercy Corps, the US-based NGO that set up ACF in 1997, remains the majority stakeholder.

As of year-end 2014, Asian Credit Fund reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 12.8 million, a gross loan portfolio of USD 8.46 million, return on assets (ROA) of 1.89 percent, return on equity (ROE) of 18.3% and approximately 12,100 active borrowers. Founded in 2013, BOPA holds stakes in MFIs in Cambodia, East Timor, Kazakhstan, Kyrgyzstan, Myanmar and Vietnam. Financial information on Karavella Invest is not available.

By Charlotte Newman, Research Associate

About Asian Credit Fund: Asian Credit Fund LLP (ACF) is a microfinance institution in Kazakhstan. Established in 1997, ACF provides financial products and services to households with the aim of improving quality of life. As of year-end 2014, Asian Credit Fund reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 12.8 million, a gross loan portfolio of USD 8.46 million, return on assets (ROA) of 1.89 percent, return on equity (ROE) of 18.3 percent and approximately 12,100 active borrowers.

About Mercy Corps: Mercy Corps is a nonprofit global relief and development agency based in the US. It provides disaster relief, health solutions and other social services in 39 countries to support socioeconomic development. As of June 2013, the organization reported total assets of USD 243 million.

Sources and Additional Resources:

[1] Information provided directly to MicroCapital by ACF.

MicroCapital Universe Profile: Asian Credit Fund

MicroCapital Universe Profile: Mercy Corps

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