MICROCAPITAL BRIEF: responsAbility Makes Debt Investments Worth $7.5m in FINCA Kyrgyzstan, Mol Bulak of Kyrgyzstan, Constanta of Georgia, BZMF of Kosovo, GafGaz Leasing of Azerbaijan

responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it invested the equivalent of USD 7.5 million in microfinance organizations in Kosovo and Central Asia.

In Kyrgyzstan, the responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, invested USD 3 million in FINCA Kyrgyzstan, a microfinance institution (MFI) that was established in 1995, and USD 1.1 million in Mol Bulak Finance, an MFI that was established in 2005. As of 2009, Mol Bulak reported to the Microfinance Information Exchange (MIX), the US-based data provider, USD 14.8 million in total assets, a gross loan portfolio (GLP) of USD 10.9 million and approximately 28,000 borrowers. As of March 2011, FINCA Kyrgyzstan reported loans outstanding of USD 50 million and 110,000 clients. FINCA Kyrgyzstan is a branch of FINCA International, which reported to MIX in 2009 total assets of USD 467 million and an operating profit of USD 742,000.

rAGMF and Mikrofinanz-Fonds, another MIV managed by responsAbility, made debt investments totaling USD 2 million in Joint Stock Company (JSC) Bank Constanta, a microfinance organization based in Georgia that reported total assets of USD 39 million, GLP of USD 31.5 million, return on assets (ROA) of 0.23 percent and return on equity (ROE) of 1.36 percent in 2009.

GafGaz Leasing, a vehicle and equipment leasing company based in Azerbaijan, also received an investment of USD 1 million from rAGMF while Beselidhja/Zavet Microfinance (BZMF), an MFI based in Kosovo received a local-currency debt investment equivalent to USD 412,000. As of 2009, BZMF reported to MIX total assets of USD 6.9 million, GLP of USD 6.3 million and 2,170 active borrowers with an average loan balance per borrower of USD 2,900. Financial data is not available for GafGaz.

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 are intended 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. These include 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 vehicle 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 US-based nonprofit Microfinance Information Exchange (MIX) that it had USD 474 million in fund assets as of 2010.

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

About JSC Bank Constanta: Constanta has been providing microfinance services to micro- and small businesses in Georgia since 1997. In December 2007, Constanta converted its operations to joint stock company (JSC) status, and it soon received a license from the National Bank of Georgia (NBG) to conduct commercial banking operations under the name JSC Bank Constanta. Constanta reported a gross loan portfolio of USD 31.5 million, total assets of USD 39 million, return on assets of 0.23 percent and return on equity of 1.36 percent in 2009. Constanta also reported having 11,400 active borrowers with an average loan balance per borrower of USD 2,772.

About Beselidhja/Zavet Microfinance (BZMF): BZMF was established Kosovo in 1999 as a program of World Relief, a US-based nongovernmental organization (NGO) that was established in 1944. BZMF’s mission is to “support transformation in the lives of the poor and in micro-, small and medium-sized enterprises (MSMEs) by providing financial services and to contribute to the economic development of Kosovo.” As of 2009, BZMF reported to the Microfinance Information Exchange (MIX), the US-based data provider, total assets of USD 6.9 million, a gross loan portfolio of USD 6.3 million and 2,170 active borrowers with an average loan balance per borrower of USD 2,900.

About Mol Bulak Finance: Mol Bulak is a microfinance institution (MFI) that was first established in the Issyk-Kul region of Kyrgyzstan in 2005. It provides small, unsecured loans for individuals and groups, primarily women, living in rural communities of Kyrgyzstan to support and encourage their economic development through the creation of small enterprises. As of 2009, Mol Bulak had USD 14.8 million in total assets, a gross loan portfolio of USD 10.9 million and approximately 28,000 borrowers with an average loan balance of USD 393 per borrower.

About FINCA Kyrgyzstan: FINCA Kyrgyzstan is a branch of FINCA International, a US-based microfinance organization, that was established in 1995 with a USD 6.2 million grant from the United States Agency for International Development (USAID), a US government agency that supports global economic and humanitarian assistance. FINCA Kyrgyzstan, mainly targets female bazaar workers as its clients. As of March 2011, FINCA Kyrgyzstan reported loans outstanding of USD 50 million and 110,000 clients with an average loan balance per client of USD 646.

About GafGaz Leasing: GafGaz Leasing is a financial leasing company that was established in Azerbaijan in 2007. GafGaz is owned by NAB Companies, a company based in Turkey that engages in vehicle and equipment leasing. GafGaz leases equipment to the following industries: construction, health, food, textile, office accessories, tourism, agriculture and oil.

Sources and Additional Resources:

Data provided by responsAbility to MicroCapital

MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments AG

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

MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29

MicroCapital’s Microfinance Universe Profile: Mikrofinanz-Fonds

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

MicroCapital’s Microfinance Universe Profile: JSC Bank Constanta

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=jsc+bank+constanta

MicroCapital’s Microfinance Universe Profile: Beselidhja/Zavet Microfinance (BZMF)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bes…

MicroCapital’s Microfinance Universe Profile: Mol Bulak Finance

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mol…

MicroCapital’s Microfinance Universe Profile: FINCA Kyrgyzstan

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FIN…

MicroCapital’s Microfinance Universe Profile: FINCA International

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital’s Microfinance Universe Profile: GafGaz Leasing

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Gaf…

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