MICROCAPITAL BRIEF: responsAbility Loans $8.7m to Microfinance Institutions (MFIs) Microenterprise Development Fund Kamurj of Armenia, ProCredit Bank Georgia

responsAbility Social Investments AG, a Swiss investment company that operates a number of microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments of USD 1.2 million in Armenian microfinance institution (MFI) Microenterprise Development Fund Kamurj (MDF Kamurj) and USD 7.5 million in Georgian MFI ProCredit Bank Georgia.

The loans to MDF Kamurj have been disbursed by the following MIVs operated by responsAbility: responsAbility Global Microfinance Fund (rAGMF), responsAbility Microfinance Leaders Fund (rAMLF) and responsAbility Mikrofinanz-Fonds. Established in 1998, MDF Kamurj works to support low-income Armenians through the provision of loans, savings and business development services. According to the US-based nonprofit data provider Microfinance Information Exchange (MIX), as of December 31, 2009, MDF Kamurj had total assets of USD 12.3 million, a gross loan portfolio of USD 8.6 million, return on equity (ROE) of 12.56 percent, return on assets of (ROA) of 9.5 percent and 12,493 active borrowers.

In Georgia, rAGMF and responsAbility Mikrofinanz-Fonds have made a combined investment of USD 7.5 million in ProCredit Bank Georgia. ProCredit Georgia, which is described as a “development-oriented full-service bank”, is a subsidiary of ProCredit Holding, a German banking group that has reported assets of EUR 4.9 billion (equivalent of USD 6 billion) through operations in 19 countries. ProCredit Georgia offers both credit and savings services. In 2009, ProCredit Georgia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 427 million, a gross loan portfolio of USD 316 million, deposits of USD 227 million, return on assets (ROA) of 2.83 percent, return on equity (ROE) of 20.5 percent and 64,000 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 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):
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 Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. rAMLF reported to the US-based, nonprofit Microfinance Information Exchange (MIX) that it had USD 160 million in fund assets as of 2010. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label in March 2011.

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.

About Microenterprise Development Fund Kamurj:
Microenterprise Development Fund Kamurj (MDF Kamurj) is an Armenian microfinance institution (MFI) that serves low-income clients. MDF Kamurj provides loan products and savings services, as well as limited business development services to its customers. According to financial information reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX), as of December 31, 2009, MDF Kamurj had total assets of USD 12.3 million, a gross loan portfolio of USD 8.6 million, return on assets (ROA) of 9.5 percent, return on equity of (ROE) of 12.56 percent and 12,493 active borrowers.

About ProCredit Bank Georgia (PCBG):
ProCredit Bank Georgia (PCBG), a member of Germany’s ProCredit Holding, is a “full-service bank” that operates in Georgia. PCBG defines itself as “development-oriented” and works especially with micro-, small and medium-sized enterprises. In 2009, PCBG reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 427 million, a gross loan portfolio USD 316 million, return on assets (ROA) of 2.83 percent, return on equity (ROE) of 20.5 percent and 64,000 active borrowers. As of 2011, ProCredit Holding consists of 21 banks operating in emerging markets in Eastern Europe, Latin America and Africa.

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 limited access to formal financial services. As of December 31, 2010 it had 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).

Sources and Additional Resources:

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

MicroCapital.org story, April 22, 2011: “MICROCAPITAL BRIEF: responsAbility of Switzerland Loans $11m to ProCredit Georgia, Frontiers of Kyrgyz Republic, AgroInvest Holding of Montenegro, Sathapana of Cambodia”, https://www.microcapital.org/microcapital-brief-responsability-of-switzerland-loans-11m-to-procredit-georgia-frontiers-of-kyrgyz-republic-agroinvest-holding-of-montenegro-sathapana-of-cambodia/

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

MicroCapital Universe Profile: responsAbility 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+Global+Microfinance+Fund+%28rAGMF%29

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

MicroCapital Universe Profile: Microenterprise Development Fund Kamurj, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microenterprise+Development+Fund+Kamurj

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

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

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

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