MICROCAPITAL BRIEF: Georgia’s Crystal Receives $2m in Equity from Unnamed Microfinance Investment Vehicle Managed by Developing World Markets

An unnamed microfinance vehicle managed by Developing World Markets (DWM), a US-based asset manager and investment bank, has made an equity investment of USD 2 million in Joint Stock Company Microfinance Organization Crystal (JSC MFO Crystal), a microfinance institution (MFI) in Georgia that aims to reduce poverty by providing financial services to low-income people [1]. JSC MFO Crystal will reportedly use the investment to strengthen “corporate governance and management systems to become a leading provider of microfinance services to Georgia’s SMEs [small and medium-sized enterprises] and agro-businesses in the way which takes into account social and environmental objectives.”

As of December 31, 2010, JSC MFO Crystal reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9.2 million, a gross loan portfolio of USD 8 million, return on assets (ROA) of 8.1 percent, return on equity (ROE) of 34.7 percent and 7,500 active borrowers.

As of September 2011, DWM reports USD 800 million in assets under management and has invested in approximately 140 MFIs worldwide. It manages microfinance investment vehicles such as the DWM Microfinance Fund-J (DWMF-J), the investment vehicle for Daiwa Microfinance Fund of the Tokyo-based financial services holding company Daiwa Securities Group Incorporated.

By Nisha Koul, Research Associate

About JSC MFO Crystal: Previously known as the Crystal Fund, Joint Stock Company Microfinance Organization Crystal (JSC MFO Crystal) is a microfinance institution (MFI) that was established in Tbilisi, Georgia, in 1998. JSC MFO Crystal was started with the aim of reducing poverty by providing financial services to low-income citizens. It was commercialized in 2007 after the passing of the domestic law on Microfinance, registering with the National Bank of Georgia. As of December 31, 2010, Crystal Fund reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 9.2 million, a gross loan portfolio of USD 8 million, return on assets (ROA) of 8.1 percent, return on equity (ROE) of 34.7 percent and 7,500 active borrowers.

About Developing World Markets (DWM): Developing World Markets is a US-based asset manager and investment bank that aims to make investments to promote sustainable economic development. It provides both debt and equity investments to microfinance institutions (MFIs) and other socially motivated organizations. As of September 2011, DWM reports USD 800 million in assets under management and has invested in approximately 140 MFIs worldwide.

Sources and Additional Resources:

[1] Press release submitted by JSC MFO Crystal to MicroCapital in October 2011.

MicroCapital.org story, October 13, 2011, “MICROCAPITAL BRIEF: Microfinance Investor Developing World Markets (DWM) Aligns Social Scorecard with Impact and Reporting Investment Standards (IRIS); Announces Staff Changes,” https://www.microcapital.org/microcapital-brief-microfinance-investor-developing-world-markets-dwm-aligns-social-scorecard-with-impact-and-reporting-investment-standards-iris-announces-staff-changes/

MicroCapital.org story, August 11, 2011, “MICROCAPITAL BRIEF: responsAbility Invests $4.3m in Microfinance Institutions Mikrofin Banja Luka of Bosnia and Herzegovina; the Agency for Finance in Kosovo (AFK); Credo and Crystal, Both of Georgia,” https://www.microcapital.org/microcapital-brief-responsability-invests-4-3m-in-microfinance-institutions-mikrofin-banja-luka-of-bosnia-and-herzegovina-the-agency-for-finance-in-kosovo-afk-credo-and-crystal-both-of-georgia/

MicroCapital.org story, April 8, 2011, “MICROCAPITAL BRIEF: MicroCred Holding, MicroCred China Receive Capital Increases Totaling $31m, Including Participation From AXA Belgium, Developing World Markets, IFC, KfW,” https://www.microcapital.org/microcapital-brief-microcred-holding-microcred-china-receive-capital-increases-totaling-31m-including-participation-from-axa-belgium-developing-world-markets-ifc-kfw/

MicroCapital.org story, March 1, 2011, “MICROCAPITAL BRIEF: Daiwa Securities Group of Japan Raises $236m for Retail Microfinance Fund to Be Managed by Developing World Markets (DWM) Asset Management LLC of USA,” https://www.microcapital.org/microcapital-brief-daiwa-securities-group-of-japan-launches-611m-microfinance-fund-for-retail-investors/

MicroCapital Universe Profile: Developing World Markets (DWM), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Developing+World+Markets+%28DWM%29

MicroCapital Universe Profile: JSC MFO Crystal, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=JSC+MFO+Crystal+%28formerly+Crystal+Fund%29

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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