MICROCAPITAL BRIEF: responsAbility Makes Debt Investments Worth $4.5m to PRASAC, Chamroeun of Cambodia, TSKI of Philippines

responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it made five investments totaling USD 4.5 million to three microfinance institutions (MFIs) in Asia. The responsAbility Global Microfinance Fund (rAGMF) and the responsAbility Microfinance Leaders Fund (rAMLF), microfinance investment vehicles (MIVs) managed by responsAbility, loaned USD 1.5 million and USD 500,000 respectively to PRASAC MFI Limited, an MFI based in Cambodia, whose mission is to engage in sustainable rural development through microfinance. PRASAC reported 88,000 active borrowers to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, in 2009. The MFI also reported a gross loan portfolio (GLP) of USD 64.4 million, return on assets (ROA) of 3.63 percent and return on equity (ROE) of 11.51 percent. rAGMF also made a local-currency loan equivalent to USD 196,000 to Chamroeun Microfinance, another Cambodian MFI. Chamroeun reported a GLP of USD 679,000, ROE of -25.14 percent and ROA of -8.39 percent to the MIX in 2009. It also had 7,158 active borrowers at that time.

In the Philippines, rAGMF and rAMLF made local-currency debt investments equivalent to USD 1.7 million and USD 575,000 respectively to Taytay Sa Kauswagan Inc. (TSKI), a Christian development organization. As of 2009 TSKI had 161,000 active borrowers, GLP of USD 20 million, ROE of 16.79 percent and ROA of 2.17 percent.

By Julie Moksim, Research Associate

About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose products aim to enable investors to earn a financial return while allowing people in developing countries and emerging markets to access markets, information and other services 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 Microfinance Leaders Fund (rAMLF): The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. Investments range from USD 50,000 to USD 1.5 million. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.

About responsAbility Global Microfinance Fund (rAGMF): rAGMF is a microfinance vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and microfinance investment vehicles (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 2010, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether microfinance investment vehicles actually support the microfinance sector. rAGMF reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it has USD 474 million in fund assets as of 2010.

About PRASAC MFI Limited: PRASAC was originally a credit component of a support program for the agriculture sector in Cambodia funded by the European Union and implemented by the Royal Government of Cambodia. It was officially registered in 2004 with the Ministry of Commerce as a private limited liability company. According to the Microfinance Information Exchange (MIX), PRASAC reported 88,000 active borrowers, a gross loan portfolio of USD 64.4 million, return on assets of 3.63 percent and return on equity of 11.51 percent in 2009.

About Chamroeun Microfinance: Chamroeun is a microfinance institution (MFI) established in Cambodia in 1995. The organization’s mission is to help low-income people in urban areas prepare for unexpected expenses by providing savings, loans and microinsurance. The MFI also helps micro- and small entrepreneurs by engaging them in skills trainings. Chamroeun reported a gross loan portfolio of USD 679,000, return on equity of -25.14 percent and return on assets of -8.39 percent in 2009. It also had 7,158 active borrowers at that time.

About Taytay Sa Kauswagan Inc. (TSKI): TSKI, a Christian development organization whose mission is to alleviate poverty through microfinance, was established in 1986 in the Philippines. In addition to providing group and individual loans, TSKI also offers its clients technology training and product development assistance. As of 2009, TSKI had 161,000 active borrowers, a gross loan portfolio of USD 20 million, return on assets of 16.79 percent and return on equity of 2.17 percent.

MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital’s Microfinance Universe Profile: responsAbility Microfinance Leaders Fund

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+(rAMLF)

MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+(rAGMF)

MicroCapital’s Microfinance Universe Profile: PRASAC MFI Ltd.

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Prasac

MicroCapital’s Microfinance Universe Profile: Chamroeun Microfinance

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CHAMROEUN+MICROFINANCE

MicroCapital’s Microfinance Universe Profile: Taytay Sa Kauswagan Inc. (TSKI)

http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Taytay+Sa+Kauswagan+Inc.+(TSKI)

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http://www.microcapital.org/microfinanceuniverse/

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