MICROCAPITAL BRIEF: responsAbility Loans $10.5m in Local Currency to ProCredit Affiliates in Ecuador, Mexico; Peruvian Microfinance Institutions Confianza, Crear Arequipa
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Thursday, August 11, 2011

MICROCAPITAL BRIEF: responsAbility Loans $10.5m in Local Currency to ProCredit Affiliates in Ecuador, Mexico; Peruvian Microfinance Institutions Confianza, Crear Arequipa

» Posted by in Category: Deals,Key Players,Latin America at 12:50 am

responsAbility Social Investments AG (responsAbility), a Swiss asset management company that manages four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it made local-currency loans equivalent to the following amounts through its MIVs: USD 2 million to ProCredit Ecuador; USD 2.97 million to ProCredit Mexico; USD 2.05 million to Financiera Confianza and USD 3.5 million to Edpyme Crear Arequipa, the last two of which are microfinance institutions (MFIs) located in Peru.

The MIV Mikrofinanz-Fonds was the source of the debt investment in ProCredit Ecuador, an MFI established in 2007 that is a member of Germany’s ProCredit Holding. As of March 31, 2011, ProCredit Ecuador reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 334 million, a gross loan portfolio of USD 273 million, return on assets (ROA) of 2.24 percent and return on equity (ROE) of 16.3 percent. ProCredit Holding, as of December 31, 2010, reported operations in 21 countries, assets of EUR 5.2 billion (equivalent to USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (equivalent to USD 4.8 billion).

ProCredit Mexico, a Mexican MFI established in 2007 that is also held by ProCredit Holding, received debt investments from both responsAbility Global Microfinance Fund (rAGMF) and responsAbility Mikrofinanz-Fonds. As of December 31, 2010, ProCredit Mexico reported equity of EUR 7.05 million (equivalent to USD 10 million).

The MIV rAGMF made the debt investment in Financiera Confianza, which was established in 1992 and reports to MIX total assets of USD 178 million, a gross loan portfolio of USD 141 million, ROA of 2.84 percent, ROE of 19.9 percent and approximately 80,000 active borrowers as of March 31, 2011.

Finally, both rAGMF and Mikrofinanz-Fonds made debt investments in Crear Arequipa, which was founded in 1998 and reports to MIX total assets of USD 150 million, a gross loan portfolio of USD 131 million, ROA of 4.98 percent, ROE of 33.3 percent and approximately 88,000 active borrowers as of March 31, 2011.

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

By Ashim Kar, Research Associate

About ProCredit Holding:
ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have previously had limited access to formal financial services. As of December 31, 2010, it reported assets of EUR 5.2 billion (equivalent to USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (equivalent to USD 4.8 billion).

About Confianza:
Financiera Confianza is a microfinance institution that was founded in Peru in 1992 as the Entrepreneurial Development Program by the US-based Inter-American Development Bank (IADB) and the Peruvian nongovernmental organization (NGO) Servicios Educativos Promoción y Apoyo Rural (SEPAR). In 1998, the program grew to become an independent financial institution and was renamed Edpyme Confianza. In 2009, it again changed its name to Financiera Confianza. It now offers microloans to rural and urban enterprises. As of March 31, 2011, it reported total assets of USD 178 million, a gross loan portfolio of USD 141 million, return on assets (ROA) of 2.84 percent, return on equity (ROE) of 19.9 percent and approximately 80,000 active borrowers.

About Crear Arequipa:
Financiera Creditos Arequipa SA (Financiera Crear) is a microfinance institution that was founded in 1998 by the NGO “Habitat Arequipa Siglo XXI”. In 2011, Banco Compartamos of Mexico purchased a majority stake in Financiera Crear. As of March 31, 2011, it reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 150 million, a gross loan portfolio of USD 131 million, ROA of 4.98 percent, ROE of 33.3 percent and approximately 88,000 active borrowers.

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 March 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 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 reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, that it held USD 103 million in assets as of 2010. Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds in March 2011.

Sources and Additional Resources:

Information submitted by responsAbility to MicroCapital, July 2011.

MicroCapital.org Story, July 15, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $8m to Kompanion of Kyrgyz Republic, Eskhata of Tajikistan, XacBank of Mongolia”, http://www.microcapital.org/microcapital-brief-responsability-loans-8m-to-kompanion-of-kyrgyz-republic-eskhata-of-tajikistan-xacbank-of-mongolia/

MicroCapital.org Story, July 14, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $27m to Microfinance Institution Prizma of Bosnia and Herzegovina; Russia’s Forus Bank, NBD Bank, FINCA Russia”, http://www.microcapital.org/microcapital-brief-responsability-loans-27m-to-microfinance-institution-prizma-of-bosnia-and-herzegovina-russia%E2%80%99s-forus-bank-nbd-bank-finca-russia/

MicroCapital.org story, June 24, 2011: “MICROCAPITAL BRIEF: FINCA International Announces Launch of FINCA Microfinance Holdings With Investments of $74m from IFC, KfW, FMO, responsAbility, Triple Jump”, http://www.microcapital.org/microcapital-brief-finca-international-announces-launch-of-finca-microfinance-holdings-with-investments-of-74m-from-ifc-kfw-fmo-responsability-triple-jump/

MicroCapital.org story, June 17, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $3.9m to Microfinance Institutions (MFIs) Arvand of Tajikistan, Mol Bulak of Kyrgyzstan, Constanta and Lazika Capital, Both of Georgia”, http://www.microcapital.org/microcapital-brief-responsability-loans-3-9m-to-microfinance-institutions-mfis-arvand-of-tajikistan-mol-bulak-of-kyrgyzstan-constanta-and-lazika-capital-both-of-georgia/

MicroCapital.org story, June 16, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $6m to ProCredit Bank of Moldova, Foundation for International Community Assistance (FINCA) Russia, FINCA Jordan”, http://www.microcapital.org/microcapital-brief-responsability-loans-6m-to-procredit-bank-of-moldova-foundation-for-international-community-assistance-finca-russia-finca-jordan/

MicroCapital Universe Profile: ProCredit Holding, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding

MicroCapital Universe Profile: ProCredit Ecuador, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+ProCredit+Ecuador

MicroCapital Universe Profile: Financiera Confianza,
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Confianza

MicroCapital Universe Profile: Financiera Creditos Arequipa SA (Financiera Crear),
http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Creditos+Arequipa+SA+%28Financiera+Crear%29

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

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

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

 

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