responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it has made local-currency loans totaling the equivalent of USD 2 million to microfinance institutions (MFIs) Middle East Micro Credit Company (MEMCC) of Jordan and Urwego Opportunity Bank (UOB) of Rwanda.
The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, invested approximately JOD 424,000 (USD 601,000) in MEMCC [1]. The responsAbility Microfinance Leaders Fund (rAMLF) and Mikrofinanz-Fonds, two other MIVs managed by responsibility, further invested approximately JOD 141,000 (USD 200,000) each in the same company. As of 2009, MEMCC had a gross loan portfolio of USD 17 million and approximately 8,800 borrowers. MEMCC does not report to the US nonprofit data provider Microfinance Information Exchange (MIX).
rAMLF further invested approximately RWF 591 million (USD 999,000) in UOB. As of 2009, UOB reported to MIX total assets of USD 10.8 million, a gross loan portfolio of USD 6.4 million, return on assets (ROA) of -6.57 percent, return on equity (ROE) of -16.5 percent and 33,900 borrowers.
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 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. 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. rAMLF reported to the US-based, nonprofit Microfinance Information Exchange (MIX) that it had USD 160 million in fund assets as of 2010. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label in March 2011.
About responsAbility Global Microfinance Fund (rAGMF):
rAGMF is a microfinance investment vehicle (MIV) managed by responsAbility that invests in microfinance institutions (MFIs) and other 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 March 2011, 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 US-based nonprofit Microfinance Information Exchange (MIX) 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 reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, that it held USD 103 million in assets as of 2010. Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds in March 2011.
About Middle East Micro Credit Company (MEMCC):
Established in 2003 in Jordan, Middle East Micro Credit Company (MEMCC) is a for-profit development finance institution that operates under the US-based nonprofit CHF International. MEMCC provides business loans to micro-, small, and medium-sized enterprises, as well as home improvement loans to low-income families. As of 2009, MEMCC has a gross loan portfolio of USD 17 million and approximately 8,800 borrowers. MEMCC does not report to the US nonprofit data provider Microfinance Information Exchange (MIX).
About Urwego Opportunity Bank (UOB):
Created as a result of a merger between Urwego Community Banking and Opportunity International Bank of Rwanda, UOB is a microfinance institution headquartered in Kigali, Rwanda. Its services include loan and savings products, business training, HIV/AIDS training and insurance coverage. UOB’s shareholders include nonprofit organizations Hope International, Opportunity International, World Relief and World Relief Canada. In 2009, UOB reported to US-based, nonprofit Microfinance Information Exchange (MIX) total assets of USD 10.8 million, a gross loan portfolio of USD 6.4 million, return on assets (ROA) of -6.57 percent, return on equity (ROE) of -16.5 percent and 33,900 borrowers.
Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital April 2011
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
MicroCapital’s Microfinance Universe Profile: Middle East Micro Credit Company (MEMCC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Middle+East+Micro+Credit+Company+%28MEMCC%29
MicroCapital Universe Profile: Urwego Opportunity Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Urwego+Opportunity+Bank#Urwego_Community_Banking
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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