MICROCAPITAL BRIEF: responsAbility Social Investments AG of Switzerland Invests $4.31m in Microfinance Institutions (MFIs) ProCredit Mexico and Pro Mujer

responsAbility Social Investments AG, a Swiss microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has executed debt investments totaling the equivalent of USD 4.31 million in microfinance institutions (MFIs) ProCredit Mexico and Pro Mujer, with the loan to Pro Mujer being directed to its operations in Mexico.

ProCredit Mexico, a Mexican MFI established in 2007 that is held by ProCredit Holding, will receive MXN 12.3 million (USD 952,000) from responsAbility Mikrofinanz-Fonds, an investment vehicle managed by responsAbility Social Investments AG that reported total assets of USD 103 million as of 2009. ProCredit Mexico will also receive MXN 37 million (USD 2.86 million) from responsAbility Global Microfinance Fund (rAGMF), which is also managed by responsAbility Social Investments AG reported total assets of USD 475 million as of June 2010.

Pro Mujer provides microfinance, business training and healthcare in five Latin American countries. Pro Mujer Mexico, established in 2001 and reporting total assets of USD 7.03 million and a gross loan portfolio of USD 5.94 million as of 2009, will receive MXN 6.39 million (USD 495,000) from responsAbility Microfinance Leaders Fund (rAMLF), another investment vehicle managed by responsAbility Social Investments AG.

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 2009 it had total assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion)

About Pro Mujer:

Pro Mujer is a women’s development and microfinance organization, established in 1990, that provides microfinance services, healthcare and training to 202,000 women in Latin America. These services are delivered through communal banks, or peer groups, of 20 to 30 women who support each other and guarantee each other’s loans. Pro Mujer has a presence in Argentina, Bolivia, Mexico, Nicaragua and Peru. As of 2008 Pro Mujer reported total assets of USD 62.5 million.

About responsAbility Mikrofinanz-Fonds:

The responsAbility Mikrofinanz-Fonds is a microfinance investment vehicle managed by responsAbility Social Investments AG, a social investment company based in Switzerland. responsAbility Microfinanz-Fonds invests in microfinance institutions (MFIs) through debt securities and equity investments. The fund was created in 2007 by responsAbility, and is financed by Bank im Bistum Essen, a German cooperative financial institution, and Stadtsparkasse D’sseldorf, a German bank. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed the rAGMF’s label as of April 2010. responsAbility Microfinanz-Fonds reports to the MIX Market assets of USD 103 million and holds 130 active microfinance investments.

About responsAbility Global Microfinance Fund (rAGMF):

The responsAbility Global Microfinance Fund (rAGMF) 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. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed the rAGMF’s label as of April 2010. According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, the rAGMF reports assets of USD 475 million in mid-2010 and holds 202 active microfinance investments.

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 rAMFL’s label as of April 2010.

By Matthew Fox, Research Assistant

Sources and Additional Resources:

E-mail correspondence with MicroCapital, September 2010

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

MicroCapital Universe: ProMujer Mexico: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Pro+Mujer

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

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

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

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