MICROCAPITAL BRIEF: responsAbility Loans $6m to ProCredit Bank of Moldova, Foundation for International Community Assistance (FINCA) Russia, FINCA Jordan

responsAbility Social Investments AG (responsAbility), a Swiss asset management company that invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has loaned the equivalent of USD 6.3 million to ProCredit Bank of Moldova, Foundation for International Community Assistance (FINCA) Russia and FINCA Jordan through MIVs that it manages.

responsAbility Mikrofinanz-Fonds (Mikrofinanz-Fonds), an MIV launched in 2007 that is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf, and responsAbility Global Microfinance Fund (rAGMF), an MIV that invests in MFIs and other MIVs mostly through short- to medium-term debt securities, have respectively made loans of USD 1 million and USD 4 million in ProCredit Bank of Moldova. ProCredit Bank Moldova reported USD 47 million in assets as of December 31, 2009.

responsAbility Microfinance Leaders Fund (rAMLF), an MIV that invests in large MFIs through debt securities and equity investments, has made local-currency debt investment equivalent of USD 800,000 to FINCA Russia and a debt investment of USD 500,000 in FINCA Jordan. FINCA Russia and FINCA Jordan are subsidiaries of Foundation for International Community Assistance (FINCA) International, a US-based nonprofit microfinance organization with 21 affiliates in Latin America, the Caribbean, Africa, Eastern Europe and Central Asia.  For 2009, FINCA Russia reported to Microfinance Information Exchange (MIX) total assets of USD 24.0 million and a gross loan portfolio of USD 18.6 million while FINCA Jordan reported to MIX total assets of USD 5.1 million and a gross loan portfolio of USD 3.6 million.

By Carol Kim, Research Associate

About responsAbility Social Investments AG (responsAbility): 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 Mikrofinanz-Fonds (Mikrofinanz-Fonds): Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) managed by responsAbility Social Investments AG of Switzerland, which invests in microfinance institutions (MFIs) and other MIVs, mostly through short- to medium-term debt securities, and funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. Launched in 2007, it invests in 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. 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.

About responsAbility Global Microfinance Fund (rAGMF): rAGMF is a microfinance investment vehicle (MIV) managed by Switzerland’s responsAbility Social Investments AG 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. In 2010, rAGMF reported to the US-based nonprofit Microfinance Information Exchange (MIX) that it had USD 474 million in fund assets.

About responsAbility Microfinance Leaders Fund (rAMLF): rAMLF is a microfinance investment vehicle (MIV) managed by Switzerland’s responsAbility Social Investments AG that 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.

About ProCredit Bank Moldova: ProCredit Bank Moldova is a bank in Moldova that provides financing to micro-, small and medium-sized enterprises. ProCredit Bank Moldova was established as a finance company in December 1999 under the name Micro Enterprise Credit (MEC) din Moldova SA. It operates a network of 23 representative offices throughout the country. ProCredit Bank Moldova is a member of the ProCredit Group, which operates in 21 countries in Eastern Europe, Latin America and Africa. ProCredit Bank Moldova is wholly foreign-owned; its shareholders are ProCredit Holding AG of Germany (84.2 percent), KfW of Germany (9.6 percent) and DOEN Foundation of the Netherlands (6.3 percent). ProCredit Bank Moldova has USD 47 million in assets as of December 31, 2009.

About Foundation for International Community Assistance (FINCA) International: FINCA International is a nonprofit microfinance organization that was founded in 1984 by Dr John Hatch. FINCA International is based in Washington, DC and serves approximately 700,000 people through its microfinance subsidiaries in 21 countries. As of 2009, it reported total assets of USD 467 million, with an operating profit of USD 742,000.

About FINCA Russia: FINCA Russia is a branch of FINCA International, which is a nonprofit microfinance organization that serves approximately 700,000 people through its microfinance subsidiaries in 21 countries. FINCA Russia reported to the US-based nonprofit Microfinance Information Exchange (MIX) that it had total assets of USD 24.0 million, a gross loan portfolio of USD 18.6 million and 8,600 active borrowers in 2009.

About FINCA Jordan: FINCA Jordan is a branch of FINCA International, which is a nonprofit microfinance organization that serves approximately 700,000 people through its microfinance subsidiaries in 21 countries. FINCA Jordan reported to the US-based nonprofit Microfinance Information Exchange (MIX) that it had total assets of USD 5.1 million, a gross loan portfolio of USD 3.6 million and 8,800 active borrowers in 2009.

Sources and Additional Resources:

[1] Data submitted by responsAbility Social Investments AG to MicroCapital, June 2011

MicroCapital.org: “responsAbility Loans $3.9m to Microfinance Institutions Financiera Confianza, Cooperativa Agropecuaria Limitada Naranjillo of Peru”, May 9, 2011, https://www.microcapital.org/microcapital-brief-responsability-loans-3-9m-to-microfinance-institutions-finaciera-confianza-cooperativa-agropecuaria-limitada-naranjillo-of-peru/

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

MicroCapital’s Universe Profile: responsAbility Mikrofinanz-Fonds (Mikrofinanz-Fonds), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

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

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

MicroCapital’s Universe Profile: ProCredit Bank Moldova, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Moldova

MicroCapital’s Foundation for International Community Assistance (FINCA International), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital’s FINCA Russia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+Russia

MicroCapital’s FINCA Jordan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA%20Jordan

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

 

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