MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Loans $11.3m to PRASAC, Thaneakea Phum Cambodia Limited (TPC) of Cambodia, LOLC Micro Credit Limited (LOMC) of Sri Lanka

responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it made seven investments totaling USD 11.3 million to microfinance institutions (MFIs) in Asia. The responsAbility Microfinance Leaders Fund (rAMLF), an investment vehicle (MIV) managed by responsAbility, made loans of USD 700,000 and USD 500,000 to PRASAC MFI Limited, a Cambodian MFI. The responsAbility Global Microfinance Fund (rAGMF), another MIV managed by responsAbility also invested a total of USD 3.8 million in PRASAC via two separate loans. In 2009 PRASAC reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, 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.

Also in Cambodia, Thaneakea Phum Cambodia Limited (TPC), an MFI established in 1994 by Catholic Relief Services (CRS), an international humanitarian agency based in the United States, received a loan of USD 1.5 million from rAGMF. In 2009 TPC reported to MIX a GLP of USD 17.5 million, total assets of USD 28.3 million, ROA of 1.46 percent and ROE of 8.29 percent.

In Sri Lanka, rAMLF and rAGMF invested USD 1 million and USD 3.8 million respectively in LOLC Micro Credit Limited (LOMC), the microfinance arm of Lanka ORIX Leasing Company (LOLC), a Sri Lankan financial service provider established in 1980. LOLC reported total assets of LKR 46.3 billion (approximately USD 674 million), a total loan portfolio of LKR 17.6 billion (approximately USD 159 million) and ROE of 19 percent for the year ending March 31, 2010.

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 investment 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 (GLP) of USD 64.4 million, return on assets (ROA) of 3.63 percent and return on equity (ROE) of 11.51 percent in 2009.

About Thaneakea Phum Cambodia Limited (TPC): TPC was launched in Cambodia in 1994 as part of the Small Enterprise Development program of Catholic Relief Services (CRS), which is based in the United States. In 2002, CRS/TPC officially incorporated to become Thaneakea Phum (Cambodia) Limited, a limited liability company. In 2003, TPC was licensed by the National Bank of Cambodia as a microfinance institution (MFI). In 2009 TPC reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, a gross loan portfolio (GLP) of USD 17.5 million, total assets of USD 28.3 million, return on assets (ROA) of 1.46 percent and return on equity (ROE) of 8.29 percent.

About LOLC Micro Credit Limited (LOMC): LOLC Micro Credit Limited (LOMC) provides individual and group loans for microentrepreneurs in Sri Lanka’s agricultural districts. Founded in 2009, LOMC is the microfinance arm of Lanka ORIX Leasing Company (LOLC), a Sri Lankan financial services provider started in 1980 by the International Finance Corporation, the Sri Lankan government and the Orient Leasing Company of Sri Lanka. It started offering microfinance services in 2003. LOLC reported total assets of LKR 46.3 billion (approximately USD 674 million), a total loan portfolio of LKR 17.6 billion (approximately USD 159 million) and a return on equity (ROE) of 19 percent for the year ending March 31, 2010.

MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments

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

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 Global Microfinance Fund

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

MicroCapital’s Microfinance Universe Profile: PRASAC MFI Ltd.

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

MicroCapital’s Microfinance Universe Profile: Thaneakea Phum Cambodia Limited (TPC)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Thaneakea+Phum+%28Cambodia%29+Limited

MicroCapital’s Microfinance Universe Profile: LOLC Micro Credit Limited (LOMC)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LOLC+Micro+Credit+Ltd.+%28LOMC%29

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