responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it has made local currency loans totaling the equivalent of USD 2 million to microfinance institutions (MFIs) in Senegal and Jordan.
The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, invested approximately XOF 319 million (USD 681,000) in MicroCred Senegal, an MFI subsidiary of MicroCred Group [1]. MicroCred Group is a microfinance investment company based in France that is part of the nonprofit Planet Finance and operates MFIs in Madagascar, Senegal, China, Nigeria and Cote d’Ivoire [2]. As of 2009, MicroCred Senegal reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 13.7 million, a gross loan portfolio of USD 9.9 million, approximately 11,600 borrowers, return on assets (ROA) of -14.3 percent and return on equity (ROE) of -92.1 percent.
Mikrofinanz-Fonds and the responsAbility Microfinance Leaders Fund (rAMLF), two other MIVs managed by responsAbility, each invested approximately JOD 246,000 (USD 350,000) in the Jordanian MFI Middle East Micro Credit Company (MEMCC) [1]. rAGMF further invested JOD 493,000 (USD 700,000) in the same company [1]. As of 2009, MEMCC reports a gross loan portfolio of USD 17 million and approximately 8,800 borrowers. MEMCC does not report to MIX.
By Medha Ravi, Research Associate
About responsAbility Social Investments AG:
Founded in 2003, responsAbility Social 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 markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. 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.
About responsAbility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that investment vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.
About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance investment vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and other MIVs, mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. In April 2010, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 million in fund assets as of 2010.
About Mikrofinanz-Fonds:
Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) that was launched in 2007, is managed by responsAbility Social Investments AG of Switzerland and is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in microfinance institutions (MFIs) through debt securities and equity investments. Mikrofinanz-Fonds reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it held USD 103 million in assets as of 2010. The Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.
About MicroCred Senegal:
MicroCred Senegal is a microfinance institution (MFI) based in Dakar, Senegal, that offers both loans and voluntary savings services. It was founded in 2007 by the MicroCred Group, which is an investment company of PlaNet Finance that operates six commercial MFIs as of 2010. As of 2009, MicroCred Senegal reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 13.7 million, a gross loan portfolio of USD 9.9 million, approximately 11,600 borrowers, return on assets (ROA) of -14.3 percent and return on equity (ROE) of -92.1 percent.
About Middle East Micro Credit Company (MEMCC):
Established in 2003 in Jordan, Middle East Micro Credit Company (MEMCC) is a for-profit development finance institution that operates under the US-based nonprofit CHF International. MEMCC provides business loans to micro-, small, and medium-sized enterprises, as well as home improvement loans to low-income families. As of 2009, MEMCC has a gross loan portfolio of USD 17 million and approximately 8,800 borrowers. MEMCC does not report to the US nonprofit data provider Microfinance Information Exchange (MIX).
About MicroCred Group:
Based in France, MicroCred Group was created by PlaNet Finance with the support of the following investors: the International Finance Corporation (IFC), Société Générale and Axa Belgium. MicroCred is an investment company that operates microfinance institutions (MFIs) in Madagascar, Senegal, China, Nigeria and Cote d’Ivoire. The founding shareholders were joined by the French Development Agency (AFD) and the European Investment Bank (EIB) in 2007 and by SNS Insitutional Microfinance Fund (SMIF), which is managed by Developing World Markets (DWM), in 2008. As of 2009, MicroCred Group reported total assets of EUR 42 million (USD 58 million), a gross loan portfolio of EUR 25 million (USD 34 million), approximately 55,000 loans disbursed and 32 branches.
About PlaNet Finance:
Founded in 1998 in Paris, France, PlaNet Finance is a nongovernmental organization (NGO) with the mission of alleviating poverty through microfinance development. PlaNet Finance is active in approximately 80 countries as of 2008 and is comprised of eight independent units: PlaNet Finance Advisory Services, which provides technical and advisory services; Planet Rating, a microfinance rating agency; PlaNIS responsAbility SAS, which specializes in advisory services and structuring and managing microfinance funds; MicroCred, an investor in microfinance; PlaNet Guarantee, which specializes in microinsurance; FinanCites, a social venture capital company; MicroFit, a microfinance software unit; and PlaNet University, a microfinance training provider.
Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital in February 2011
[2] MicroCapital’s Microfinance Universe Profile: MicroCred Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred+Group
MicroCapital.org story, January 10, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $13m to Banco Continental of Paraguay, Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-13m-to-banco-continental-of-paraguay-financiera-confianza-of-peru/
MicroCapital.org story, February 4, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $10m to FINCA International Subsidiaries in Azerbaijan, Russia, Ecuador and Mexico”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-10m-to-finca-international-subsidiaries-in-azerbaijan-russia-ecuador-and-mexico/
MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments AG,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital’s Microfinance Universe Profile: responsAbility Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29
MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29
MicroCapital’s Microfinance Universe Profile: Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds
MicroCapital’s Microfinance Universe Profile: MicroCred Senegal, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=MicroCred+Senegal
MicroCapital’s Microfinance Universe Profile: Middle East Micro Credit Company (MEMCC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Middle+East+Micro+Credit+Company+%28MEMCC%29
MicroCapital’s Microfinance Universe Profile: PlaNet Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNet+Finance
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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