MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Loans $15m to FINCA International Subsidiaries in Azerbaijan, Georgia, Kyrgyzstan

responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it has invested USD 15 million in debt in FINCA International subsidiaries in Azerbaijan, Georgia and Kyrgyzstan. FINCA International is a global microfinance network operating in 21 countries reporting total assets of USD 467 million as of 2009 [2].

The responsAbility Global Microfinance Fund (rAGMF) and Mikrofinanz-Fonds, microfinance investment vehicles (MIVs) managed by responsAbility, invested USD 8.7 million and USD 800,000 respectively in FINCA Azerbaijan [1]. As of 2009, FINCA Azerbaijan reported to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 88.1 million, a gross loan portfolio of USD 69.2 million, approximately 90,500 borrowers, return on assets (ROA) of 3.86 percent and return on equity (ROE) of 23.23 percent.

rAGMF invested USD 2 million in FINCA Georgia, while Mikrofinanz-Fonds further invested USD 1 million in the same company [1]. As of 2009, FINCA Georgia reported to MIX total assets of USD 25.4 million, a gross loan portfolio of USD 16.8 million, approximately 38,900 borrowers, ROA of -4.28 percent and ROE of -28.57 percent.

The responsAbility Microfinance Leaders Fund (rAMLF), another MIV managed by responsAbility, and rAGMF loaned USD 2 million and USD 1 million respectively to FINCA Kyrgyzstan [1]. As of 2010, FINCA Kyrgystan reported to MIX total assets of USD 61.7 million, a gross loan portfolio of USD 53 million, approximately 108,100 borrowers, ROA of 7.09 percent and ROE of 35.43 percent.

According to calculations based on data from MIX from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets.

By Medha Ravi, 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. The Luxembourg Fund Labeling Agency (LuxFLAG), an 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 investment 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 investment vehicles actually support the microfinance sector. rAGMF reported to the Microfinance Information Exchange (MIX), the US nonprofit data provider, 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 reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, that it held USD 103 million in assets as of 2010. The Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.

About FINCA International:
Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a global nonprofit microfinance network based in Washington, DC, that serves approximately 700,000 people through its subsidiaries in 21 countries. As of 2009, it had total assets of USD 467 million, with an operating profit of USD 742,000.

About FINCA Azerbaijan:
FINCA Azerbaijan, a microfinance institution (MFI) established in 1998, aims to provide financial services to low-income entrepreneurs so they can create jobs, build assets and improve their standard of living. As of 2009, FINCA Azerbaijan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 88.1 million, a gross loan portfolio of USD 69.2 million, approximately 90,500 borrowers, return on assets (ROA) of 3.86 percent and return on equity (ROE) of 23.23 percent.

About FINCA Georgia:
FINCA Georgia, established in 1999 as a branch of US-based nonprofit FINCA International, aims to provide financial services to low-income entrepreneurs so they can create jobs, build assets and improve their standard of living. As of 2009, FINCA Georgia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 25.4 million, a gross loan portfolio of USD 16.8 million, approximately 38,900 borrowers, return on assets (ROA) of -4.28 percent and return on equity (ROE) of -28.57 percent.

About FINCA Kyrgyzstan:
FINCA Kyrgyzstan is a branch of FINCA International, a US-based nonprofit. It was established in 1995 with a USD 6.2 million grant from the United States Agency for International Development (USAID), a US government agency provides global economic and humanitarian assistance. According to FINCA Kyrgyzstan, approximately 70 percent of the unemployed in Kyrgyzstan are women, which is why the organization mainly targets female bazaar workers as its clients. As of 2010, FINCA Kyrgystan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 61.7 million, a gross loan portfolio of USD 53 million, approximately 108,100 borrowers, return on assets (ROA) of 7.09 percent and return on equity (ROE) of 35.43 percent.

Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital April 2011

[2] MicroCapital’s Microfinance Universe Profile: FINCA International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

MicroCapital.org story, January 10, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $13m to Banco Continental of Paraguay, Financiera Confianza of Peru”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-13m-to-banco-continental-of-paraguay-financiera-confianza-of-peru/

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 Microfinance Leaders Fund (rAMLF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+%28rAMLF%29

MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund (rAGMF), 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

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

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