MICROCAPITAL BRIEF: Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $3m to Indonesia’s Mitra Bisnis Keluarga Ventura (MBK), $1m to Azerbaijan’s Finance for Development (FinDev)

The Luxembourg-based Grameen Credit Agricole Microfinance Foundation (GCAMF), which provides financial services to “social businesses,” recently informed MicroCapital that it has provided a three-year local-currency loan equivalent in value to EUR 2.1 million (USD 2.9 million) to Mitra Bisnis Keluarga Ventura (MBK), a microfinance institution (MFI) located in Indonesia. The foundation has also loaned local currency equivalent in value to EUR 990,000 (USD 1.3 million) to Finance for Development Limited Liability Company (FinDev), a financial institution in Azerbaijan.

MBK provides group loans for female-led microenterprises based on “a methodology inspired by the Grameen model”[1]. As of March 2014, MBK has 223 branches, a loan portfolio of USD 54 million and approximately 370,000 active clients, all of whom are women in rural areas of Indonesia. The institution achieved return on assets of 13.12 percent and return on equity of 64.65 percent as of 2012.

FinDev provides group and individual loans for microenterprise, land and household items as well as for expenses such as education, home construction and medical care, mainly in rural areas of Azerbaijan. As of 2014, FinDev has a gross loan portfolio of USD 19.7 million and approximately 13,000 active borrowers, 23.5 percent of whom are women. As of December 31, 2011, FinDev reported return on assets of 8.08 percent.

By Alíz Crowley, Research Associate

About Mitra Bisnis Keluarga Ventura (MBK)

Mitra Bisnis Keluarga (MBK) Ventura is an Indonesian microfinance institution that was established in 2006. Its vision is to raise the living standards of lowest-income quartile of the population in Indonesia by providing access to micro- and small working capital loans to large numbers of households in rural areas. As of March 2014, MBK has 223 branches, a loan portfolio of USD 54 million and approximately 370,000 active clients, all of whom are women living in rural areas of Indonesia. The institution achieved return on assets of 13.12 percent and return on equity of 64.65 percent as of 2012.

About Finance for Development LLC (FinDev)

Finance for Development LLC (FinDev) is a financial institution that began operations in 1997 as a savings and credit project of humanitarian organization Oxfam Great Britain. Registered in 2002 as an independent entity, it provides group and individual loans for microenterprise, land and household items as well as for expenses such as education, home construction and medical care, mainly in rural areas of Azerbaijan. As of 2014, FinDev has a gross loan portfolio of USD 19.7 million and approximately 13,000 active borrowers, 23.5 percent of whom are women. As of 2014, the average loan size offered by FinDev is EUR 1,515 (USD 2,063). As of December 31, 2011, FinDev reported return on assets of 8.08 percent.

About Grameen Credit Agricole Microfinance Foundation (GCAMF)

The Grameen Credit Agricole Microfinance Foundation (GCAMF) provides financial services to microfinance institutions (MFIs) and social business projects. GCAMF was founded in Luxembourg in 2008 by Crédit Agricole SA, a French retail bank, and Grameen Trust, a nonprofit microfinance organization affiliated with Grameen Bank of Bangladesh. In financing microfinance institutions (MFIs), GCAMF focuses on those that prioritize rural development, transparency, consumer protection and serving women. As of December 2012, the foundation reported total assets of EUR 51.1 million (USD 70.3 million). Since its inception in 2008, the foundation has invested in 31 microfinance institutions (MFIs), 10 social-business projects and one fund in 21 countries. The foundation was active in Azerbaijan, Bangladesh, Benin, Burkina Faso, Cambodia, Cameroon, Democratic Republic of Congo, France, Indonesia, Kenya, Kosovo, Madagascar, Mali, Palestine, Philippines, Senegal, Sri Lanka, Tajikistan, Timor Leste, Togo, Zambia in 2013.

Sources and Additional Resources

[1] Grameen Credit Agricole Microfinance Foundation, 4th Loan for Our Indonesian Partner MBK Ventura

[2] Grameen Credit Agricole Microfinance Foundation, The Foundation Renews its Support to FinDev Institution

MicroCapital, July 10, 2014, Grameen Credit Agricole Microfinance Foundation (GCAMF) Loans $200k to Mec Fadec of Senegal, $680k to TIAVO of Madagascar

MicroCapital, July 9, 2014, “FinDev Azerbaijan: Retaining Key Staff Through a ‘Pay for Performance’ Culture;” by Sevda Huseynova, Jalal Aliyev, Kinga Dabrowska; published by Microfinance Centre

MicroCapital, November 7, 2013, International Finance Corporation (IFC) Makes $3m Equity Investment in Bina Usaha Keluarga (BUK) of Indonesia, Seeking to Triple Female Clients of Microfinance Institution Mitra Bisnis Keluarga Ventura (MBK)

MicroCapital Universe Profile: Mitra Bisnis Keluarga Ventura (MBK)

MicroCapital Universe Profile: Finance for Development LLC (FinDev)

MicroCapital Universe Profile: Grameen Credit Agricole Microfinance Foundation (GCAMF)

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