ResponsAbility Social Investments, a Swiss investment company, recently made a loan of USD 1.5 million to Al Majmoua, a nonprofit microcredit organization also known as the Lebanese Association for Development.
Al Majmoua was established in 1994 as a program of Save the Children US, a branch of the UK-based nonprofit that supports relief and development programs. Al Majmoua provides both group and individual loans primarily in rural areas, and in 2011 it launched a loan product for small and medium-sized enterprises. ResponsAbility reports that as of November 2012 Al Majmoua has a loan portfolio of USD 29.4 million and approximately 35,000 clients. As of year-end 2011, Al Majmoua reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider return on assets (ROA) of 7.69 percent and return on equity (ROE) of 13.2 percent.
In other news, responsAbility Social Investments also loaned USD 10 million to Araratbank, an Armenian deposit-taking bank serving micro-, small and medium-sized enterprises (MSMEs) and retail customers. As of June 2012, Araratbank holds a loan portfolio of USD 117 million and approximately 24,000 borrowers.
As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion.
By Charlotte Newman, Research Associate
About Al Majmoua
Al Majmoua, also known as the Lebanese Association for Development, is a nongovernmental organization (NGO) that was launched as a microcredit program in 1994 by Save the Children, an organization that was founded in the United Kingdom in 1919 with the goal of aiding children affected by World War I. Al Majmoua aims to contribute to the well-being of low-income Lebanese people by offering them tools to become financially independent. As of year-end 2011, Al Majmoua reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 27.5 million in assets, return on assets (ROA) of 7.69 percent, return on equity (ROE) of 13.2 percent and 28,800 active borrowers. As of September 30, 2012, Al Majmoua reports a gross loan portfolio of USD 29.5 million.
Araratbank, previously called Haykap Bank, was founded in 1991 in Armenia and provides services primarily to micro-, small and medium-sized enterprises (MSMEs). The European Bank for Reconstruction and Development (EBRD) has a 25-percent stake in the bank plus one share. As of June 2012, Araratbank holds a loan portfolio of USD 117 million and serves approximately 24,000 borrowers.
About responsAbility Social Investments
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. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. 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.
Sources and Additional Resources:
Information sent by responsAbility to MicroCapital.
MicroCapital.org story, December 8, 2012, “MICROCAPITAL BRIEF: responsAbility Social Investments Disburses $14m to LOLC Micro Credit Limited of Sri Lanka,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-disburses-14m-to-lolc-micro-credit-limited-of-sri-lanka/
MicroCapital.org story, November 8, 2012, “MICROCAPITAL BRIEF: ResponsAbility loans $1.2m to Caja Municipal de Ahorro y Credito de Maynas of Peru, Disburses First Tranche of $15m Loan to Vision Fund International,” https://www.microcapital.org/microcapital-brief-responsability-loans-1-2m-to-caja-municipal-de-ahorro-y-credito-de-maynas-of-peru-disburses-first-tranche-of-15m-loan-to-vision-fund-international/
MicroCapital Universe Profile: Al Majmoua
MicroCapital Universe Profile: Araratbank
MicroCapital Universe Profile: responsAbility Social Investments
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
- MICROCAPITAL BRIEF: EBRD Loans Local-currency Totalling $10m to Araratbank of Armenia, Targeting Women-owned Rural SMEs
- MICROCAPITAL BRIEF: ResponsAbility Investments Loans $15m to Trustco of Namibia for Education Funding
- MICROCAPITAL BRIEF: ResponsAbility Lends $45m to TBC Bank in Georgia for MSMEs
- MICROCAPITAL BRIEF: ResponsAbility to Loan Additional $3m to Bolivian Microfinance Institution Diaconia FRIF
- MICROCAPITAL BRIEF: responsAbility Investments Places 9% Equity in Russia’s Center-Invest for SMEs