MICROCAPITAL BRIEF: responsAbility Social Investments Makes Debt Investments Totaling $1.5m in Microfinance Institutions (MFIs) FINCA DRC of Democratic Republic of the Congo, Grooming Centre of Nigeria and WAGES of Togo

responsAbility Social Investments AG (responsAbility), a social investment company based in Switzerland, reported to MicroCapital that it has provided approximately USD 1.5 million in debt financing to FINCA DRC of Democratic Republic of the Congo, Grooming Nigeria of Nigeria and Women and Associations for Gain both Economic and Social (WAGES) of Togo.

The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, loaned USD 500,000 to FINCA DRC, the local branch of US-based FINCA International. As of year-end 2009 FINCA DRC had a gross loan portfolio of USD 10.4 million, total assets of USD 16.5 million and 44,532 borrowers. As of 2008, it had total assets of USD 450 million, with an operating profit of USD 8.6 million.

rAGMF also made a loan to Grooming Centre, an NGO founded in Nigeria in 2006, of the local currency equivalent of USD 252,000. As of September 2010, Grooming Centre had 98 branches serving 89,897 clients in Nigeria.

Three responsAbility funds made loans to WAGES, an MFI in Togo. rAGMF loaned the local currency equivalent of USD 252,500. responsAbility Microfinance Leaders Fund (rAMLF), a microfinance investment vehicle (MIV) under the management of responsAbility, loaned the MFI the local currency equivalent of USD 208,500. responsAbility Global Microfinance Fund (rAGMF), another microfinance investment vehicle (MIV) managed by responsAbility, loaned WAGES USD 208,500. As of year-end 2009, WAGES had a gross loan portfolio of USD 22.2 million, total assets of USD 25.3 million, return on assets (ROA) of 2.9 percent and return on equity (ROE) of 25.3 percent.

By Witt Gatchell, Research Associate

About responsAbility Social Investments AG:
Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose investment products aim to enable people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized (SME) financing, fair trade and independent media. It aims to enable private and institutional investors to contribute to positive social development while earning a financial return. According to calculations based on data on the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets.

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 independent 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 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 microfinance information clearinghouse, that it holds USD 103 million in assets as of 2010. Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that investigates whether microfinance investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.

About FINCA International:
The Foundation for International Community Assistance (FINCA) International is a global microfinance network serving over 700,000 people through its subsidiaries in 21 countries. As of 2008, it had total assets of USD 450 million, with an operating profit of USD 8.6 million.

About Grooming Centre:
Grooming Centre of Nigeria is a non-governmental organization (NGO) established in November 2006 that aims to address the near absence of financial services for poor people engaged in small trading and productive activities in the country. As of September 2010, Grooming Centre had 98 branches serving 89,897 clients in Nigeria.

About Women and Associations for Gain both Economic and Social (WAGES):
Women and Associations for Gain both Economic and Social (WAGES) is an microfinance institution (MFI) in Togo. WAGES aims to support women engaged in income-generaing activities in urban, peri-urban and rural areas, by helping them organize into associations that allow them to benefit from financial services, institutional support and training. As of year-end 2009, WAGES had a gross loan portfolio of USD 22.2 million, total assets of USD 25.3 million, return on assets (ROA) of 2.9 percent and return on equity (ROE) of 25.3 percent.

About responsAbility Microfinance Leaders Fund (rAMLF):
rAMLF is a microfinance investment vehicle (MIV), managed by responsAbility, that mobilizes capital for microfinance institutions (MFIs). rAMLF invests in large microfinance institutions (MFIs) through debt securities and equity investments. LuxFLAG, an independent organization that investigates whether microfinance investment vehicles actually support the microfinance sector, renewed rAMFL’s label as of April 2010. The fund has USD 160 million in fund assets and USD 130 million of allocated funds as of 2010.

Sources and Additional Information:

[1] Data submitted to MicroCapital by responsibility in November October 2010

MicroCapital’s Microfinance Universe profile: responsAbility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res

MicroCapital’s Microfinance Universe profile: responsAbility Global Microfinance Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res

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

MicroCapital’s Microfinance Universe profile: responsAbility Mikrofinanz-Fondz
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=res

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

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