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

responsAbility Social Investments AG, a Swiss for-profit company that operates four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments totalling USD 4.36 million in microfinance institutions (MFIs) Mikrofin Banja Luka of Bosnia and Herzegovina, the Agency for Finance in Kosovo (AFK), Credo of Georgia and Crystal, also of Georgia. The investments have been made through two MIVs: the responsAbility Global Microfinance Fund (rAGMF), which makes short- and medium-term investments in MFIs and MIVs, and the responsAbility Microfinance Leaders Fund (rAMLF), which primarily invests in large MFIs.

In Bosnia and Herzegovina, rAGMF has made a local-currency debt investment worth USD 2.15 million in Mikrofin Banja Luka, a microcredit provider. As of June 30, 2011, Mikrofin reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 145 million, a gross loan portfolio of USD 124 million, return on assets (ROA) of 1.72 percent, return on equity (ROE) of 6.46 percent and 38,829 active borrowers.

rAGMF has also made a local-currency debt investment worth USD 715,000 in the Agency for Finance in Kosovo (AFK), an MFI that was established to help in the redevelopment of the economy after the Kosovo War. As of December 31, 2010, AFK reported to MIX total assets of USD 12.2 million, a gross loan portfolio of USD 10.8 million, ROA of 2.18 percent, ROE of 20.4 percent and 4,600 active borrowers.

In Georgia, rAMLF has invested USD 1 million in LLC MFO Credo, an MFI that disburses loans to micro and small enterprises (MSEs). As of December 31, 2010, Credo reported to MIX total assets of USD 44.5 million, a gross loan portfolio of USD 34 million, ROA of 7.26 percent, ROE of 45.8 percent and approximately 43,000 active borrowers.

Also in Georgia, rAMLF has invested USD 500,000 in JSC MFO Crystal, an MFI that was formerly known as the Crystal Fund. As of December 31, 2010, Crystal Fund reported to MIX total assets of USD 9.2 million, a gross loan portfolio of USD 8 million, ROA of 8.1 percent, ROE of 34.7 percent and 7,500 active borrowers.

According to calculations based on data from MIX from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets

By Rohan Trivedi, Research Associate

About Mikrofin Banja Luka:
Mikrofin Banja Luka, established in 1999, is a microfinance institution (MFI) based in Bosnia and Herzegovina. Its target market is low-income individuals, to whom it provides microcredit services. As of June 30, 2011, Mikrofin reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 145 million, a gross loan portfolio of USD 124 million, return on assets (ROA) of 1.72 percent, return on equity (ROE) of 6.46 percent and 38,829 active borrowers.

About The Agency for Finance in Kosovo (AFK):
The Agency for Finance in Kosovo (AFK) was founded in 1999 by Mercy Corps, a US-based nonprofit organization. At the conclusion of the Kosovo War, AFK was established with a view of providing microcredit to low-income individuals as they attempted to rebuild. As of December 31, 2010, AFK reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 12.2 million, a gross loan portfolio of USD 10.8 million, return on assets (ROA) of 2.18 percent, return on equity (ROE) of 20.4 percent and 4,600 active borrowers.

About LLC MFO Credo:
LLC microfinance organization (MFO) Credo is a microfinance institution (MFI) that was established in 1997 in Tbilisi, Georgia. As of December 31, 2010, Credo reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 44.5 million, a gross loan portfolio of USD 34 million, return on assets (ROA) of 7.26 percent, return on equity (ROE) of 45.8 percent and approximately 43,000 active borrowers.

About JSC MFO Crystal:
JSC microfinance organization (MFO) Crystal is a microfinance institution (MFI) that was established in Tbilisi, Georgia in 1998. JSC MFO Crystal was previously known as The Crystal Fund and 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 national 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 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 Global Microfinance Fund (rAGMF):
The responsAbility Global Microfinance Fund (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 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) that it had USD 474 million in fund assets as of 2010.

About responsAbility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. 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. rAMLF reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 160 million for 2010.

Sources and Additional Resources:

[1] Information submitted by responsAbility Social Investments AG to MicroCapital, August 2011.

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

MicroCapital Universe Profile: Agency for Finance in Kosovo (AFK), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AFK

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

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

MicroCapital Universe Profile: responsAbility Social Investments AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital Universe Profile: repsonsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29

MicroCapital Universe Profile: responsAbility Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29

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

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