MICROCAPITAL BRIEF: responsAbility Invests $2m in Jordan’s Middle East Micro Credit Company (MEMCC), Palestine for Credit and Development (FATEN)

Switzerland’s responsAbility Social Investments AG recently reported to MicroCapital that is has lent the local currency equivalent of USD 1.5 million to Jordan’s Middle East Micro Credit Company (MEMCC) –with equivalent to USD 1 million from the responsAbility Global Microfinance Fund (rAGMF) and equivalent to USD 500,000 from responsAbility Mikrofinanz-Fonds (rAMF). Palestine for Credit and Development (FATEN) received a total of USD 500,000, including USD 380,000 from rAGMF and USD 120,000 from rAMF.

MEMCC is a for-profit development finance institution that operates under the US-based nonprofit CHF International. As of 2010, MEMCC reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, a gross loan portfolio of USD 19.7 million and approximately 11,189 borrowers. Between September 2009 and March 2011, CHF worked in 29 countries. As of September 2010, CHF reported net assets of USD 101 million.

Palestine for Credit and Development (FATEN in Arabic) is a microfinance institution based in the West Bank in Palestine. As of 2010, FATEN reported to MIX total assets of USD 22 million, a gross loan portfolio of USD 21.1 million and 11,008 active borrowers.

By Natalie Baer, Research Associate

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 2010, MEMCC reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, a gross loan portfolio of USD 19.7 million and approximately 11,189 borrowers.

About Palestine for Credit and Development (FATEN): Palestine for Credit and Development (FATEN in Arabic) is a microfinance institution based in the West Bank in Palestine. The organization’s mission is to “strengthen the economic base of Palestinian microentrepreneurs, particularly women, by providing sustainable financial services suited to their needs.” Established in 1999, FATEN also offers Islamic microfinance services for Muslim entrepreneurs. As of 2010, FATEN reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 22 million, a gross loan portfolio of USD 21.1 million and 11,008 active borrowers.

About CHF International (CHF): CHF International (CHF) is an international development organization founded in 1952 that works in post-conflict, unstable and developing countries. CHF partners with communities in efforts to help them to improve and direct their lives and livelihoods. CHF is a politically neutral nonprofit organization. Between September 2009 and March 2011, CHF worked in 29 countries. As of September 2010, CHF reported net assets of USD 101 million. CHF Development Finance International LLC, a limited liability company registered in the US state of Maryland and majority-owned by CHF International, was created in September 2006 to house the commercial ownership of financial institutions in which CHF has an equity position.

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. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. 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 Global Microfinance Fund (rAGMF): The responsAbility Global Microfinance Fund (rAGMF) is a microfinance investment vehicle (MIV) managed by responsAbility Social Investments 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 2011, 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 US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 532 million in 2011.

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 short- to medium-term income-bearing debt securities of microfinance institutions (MFIs). In April 2011, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector. Mikrofinanz-Fonds reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 141 million in 2011.

Sources and Additional Resources:

[1] Information provided to MicroCapital by responsAbility

MicroUniverse profile: Middle East Micro Credit Company (MEMCC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Middle+East+Micro+Credit+Company+%28MEMCC%29

MicroUniverse profile: Palestine for Credit and Development (FATEN in Arabic)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Palestine+for+Credit+and+Development+%28FATEN%29

MicroUniverse profile: CHF International
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CHF+International

MicroUniverse profile: responsAbility Social Investments AG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroUniverse profile: The responsAbility Global Microfinance Fund (rAGMF)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29

MicroUniverse profile: Mikrofinanz-Fonds
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

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

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