MICROCAPITAL BRIEF: Belgium’s Impulse Microfinance Investment Fund Exits from MFIs in India, Mexico

During the year ending December 2014, the Impulse Microfinance Investment Fund (Impulse Fund), which is managed by Belgium’s Incofin Investment Management (Incofin), sold its equity stakes in India-based Grameen Koota and the Mexican operations of El Salvador-based Apoyo Integral Inversiones, according to a recent announcement by Incofin. Whilst the Impulse Fund sold its stake of about 10 percent in Grameen Koota to a fund specializing in microfinance, its participation in the Mexican operations of Apoyo Integral Inversiones was sold to a local bank. The names of the purchasing organizations, the prices paid and the size of the stake in Apoyo Integral Inversiones have not been disclosed. In 2014, Impulse Fund reported a net profit of EUR 1.6 million (USD 1.75 million) and return on equity of 10.3 percent. The fund also reported that its shareholders were paid a dividend of 10 percent of its nominal capital [1]. As of May 2015, the fund has assets totalling EUR 51 million (USD 55.6 million) and an investment portfolio amounting to EUR 49 million (USD 53.5 million).

As of 2013, Grameen Koota reported total assets of USD 175.7 million, a gross loan portfolio of USD 136.5 million and 504,688 active borrowers. Grameen Koota also reported return on assets (ROA) of 2.66 percent and return on equity (ROE) of 13.30 percent, as of 2013. The institution does not accept deposits.

In 2013, Apoyo Integral México, in which Apoyo Integral Inversiones had acquired majority shareholding in October 2009, reported total assets of USD 8.8 million and a gross loan portfolio of USD 6.8 million. As of 2013, Apoyo Integral México also reported ROA of 1.15 percent and ROE of 5.47 percent. The El Salvador-based Apoyo Integral, another MFI in which Apoyo Integral Inversiones is a major shareholder, reported total assets of USD 85.5 million, a gross loan portfolio of USD 68.9 million and a customer base of 21,382 as of 2014. As of 2013, Apoyo Integral reported ROA of 0.57 percent and ROE of 3.42 percent.  Apoyo Integral Inversiones  provides microfinance in El Salvador, Mexico and Guatemala through its subsidiaries.

By Arpita Sarkar, Research Associate

About Grameen Koota:

Grameen Financial Services Private Limited, popularly known as Grameen Koota, was founded in India in 1999. It provides credit to low-income households in the Indian states of Karnataka, Tamil Nadu and Maharashtra. Grameen Koota was launched with funding from Grameen Trust, an India-based non-governmental organization that supports microfinance globally through funding, training and technical assistance. Grameen Koota reported total assets of USD 175.7 million, a gross loan portfolio of USD 136.5 million and 504,688 active borrowers as of 2013. Grameen Koota also reported return on assets (ROA) of 2.66 percent and return on equity (ROE) of 13.30 percent, as of 2013. The institution does not accept deposits.

About Apoyo Integral Inversiones:

Founded in 2008, Apoyo Integral Inversiones is a holding company which operates through its subsidiaries in Mexico, El Salvador and Guatemala, to offer alternative financing and microfinance services to micro-and small-businesses. The company is based in San Salvador, El Salvador.

About Apoyo Integral:

Apoyo Integral is a microfinance institution that was established in El Salvador in 1990. Apoyo Integral provides poor people in El Salvador with access to financial services, including microcredit and microinsurance. As of 2014, Apollo Integral  reported total assets of USD 85.5 million, a gross loan portfolio of USD 68.9 million and a customer base of 21,382. As of 2013, Apoyo Integral reported return on assets (ROA) of 0.57 percent and return on equity (ROE) of 3.42 percent.

About Impulse Microfinance Investment Fund:

Impulse Fund is a Belgian investment vehicle that was incorporated in 2004 by the Belgian institutional investors KBC Bank Volksvermogen, a holding group; Volksdepositokas (VDK) Spaarbank, a savings bank; MRBB, a farmers’ association; and Volksvermogen, a fund managed by Incofin CVSO. Impulse Fund is managed by Incofin Investment Management, which is based in Belgium and specializes in microfinance investment. Impulse Fund subscribes to equity and issues loans to microfinance institutions in 15 countries. As of May 2015, the fund has assets totalling EUR 51 million (USD 55.6 million) and an investment portfolio amounting to EUR 49 million (USD 53.5 million).

Sources and Additional Resources:

[1] Incofin Investment Management: “‘Impulse Microfinance Investment Fund’ sells equity stakes in Indian and Mexican microfinance institutions and realizes attractive upside,”https://www.incofin.com/en/news/impulse-microfinance-investment-fund-sells-equity-stakes-indian-and-mexican-microfinance

MicroCapital Story, March 14, 2013, “MICROCAPITAL BRIEF: Grameen Koota of India Receives $9.8m in Equity from Incofin, MicroVentures, Aavishkaar Goodwell, Creation Investments; $4m in Debt Funding from Deutsche Bank Microfinance Fund,” https://www.microcapital.org/microcapital-brief-grameen-koota-of-india-receives-9-8m-in-equity-from-incofin-microventures-aavishkaar-goodwell-creation-investments-4m-in-debt-funding-from-deutsche-bank-microfinance-fund/

MicroCapital Story, October 31, 2012, “MICROCAPITAL BRIEF: Grameen Koota of India Looks to Expand into Housing Microfinance,”https://www.microcapital.org/microcapital-brief-grameen-koota-of-india-looks-to-expand-into-housing-microfinance/

MicroCapital Story, June 22, 2012, “MICROCAPITAL BRIEF: Indian Microfinance Institution Grameen Koota Raises $5m from responsAbility through Nonconvertible Debentures,” https://www.microcapital.org/microcapital-brief-indian-microfinance-institution-grameen-koota-raises-5m-from-responsability-through-nonconvertible-debentures/

MicroCapital Story, February 25, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments Loans Total of $5.8m to Banco Solidaro of Ecuador, Fundación de Apoyo Comunitario y Social del Ecuador (FACES) of Ecuador, Edpyme Alternativa of Peru, Apoyo Integral of El Salvador,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-loans-total-of-5-8m-to-banco-solidaro-of-ecuador-fundacion-de-apoyo-comunitario-y-social-del-ecuador-faces-of-ecuador-edpyme-alternativa-of/

MicroCapital Universe Profile: Incofin Impulse Microfinance Investment Fund, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Impulse+Microfinance+Investment+Fund

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

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

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

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