MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Debt Investments Totaling $6m in Microfinance Institution (MFI) ACBA-Credit Agricole Bank CJSC and ACBA Leasing of Armenia

responsAbility Social Investments AG (responsAbility), an investment company based in Switzerland, recently reported to MicroCapital that in October 2010 it made five debt investments in microfinance institution (MFI) ACBA-Credit Agricole Bank CJSC (ACBA) and its subsidiary leasing branch, ACBA Leasing.

The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle managed by responsAbility, loaned USD 3.25 million to ACBA, a regulated bank in Armenia. The responsAbility Microfinance Leaders Fund (rAMLF) and responsAbility Mikrofinanz-Fonds, two other microfinance investment vehicles managed by responsAbility, also made debt investments of USD 1 million and USD 750,000, respectively, in ACBA.

rAGMF and rAMLF also loaned USD 1.5 million and USD 500,000, respectively, to ACBA Leasing.

As of 2009, ACBA reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, USD 425 million in assets, a gross loan portfolio of USD 223 million, return on assets of 2.83 percent and return on equity of 13 percent.

About ACBA-Credit Agricole Bank CJSC (ACBA): ACBA-Credit Agricole Bank CJSC (ACBA) was founded by Agricultural Cooperative Regional Unions of the three Armenian provinces of Shirak, Armavir and Ararat. It obtained a full banking license on 29 March 1996 to finance small and medium-sized agricultural enterprises and individual farmers under the name Agricultural Cooperative Bank of Armenia. In 2006 Credit Agricole SA, France, made an investment in ACBA, and the Bank was renamed and reorganised into ACBA-Credit Agricole Bank CJSC. As of 2009, ACBA reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, USD 425 million in assets, a gross loan portfolio of USD 223 million, return on assets of 2.83 percent and return on equity of 13 percent.

About ACBA-Credit Agricole Leasing: Established in 2003, ACBA-Credit Agricole Leasing (ACBA Leasing) is a subsidiary of ACBA-Credit Agricole Bank CJSC, a regulated bank in Armenia. ACBA Leasing finances the acquisition of machinery and fixed assets such as equipment for engineering, agriculture, medical procedures, transportation and service businesses. Leasing contracts can last up to 60 months with annual interest rates ranging from 12 percent to 18 percent. ACBA Leasing does not report financial information to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.

About responsAbility: 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 on the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by well-established Swiss financial institutions and a social venture capital company as founders and shareholders. These include Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.

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 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 organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010.

About responsAbility 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 organization that investigates whether microfinance investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.

By Diana Baide, Research Assistant

[1] Data submitted to MicroCapital by responsAbility in November 2010

MicroCapital’s Microfinance Universe profile: ACBA

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

MicroCapital’s Microfinance Universe profile: ACBA Leasing

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACBA+Leasing

MicroCapital’s Microfinance Universe profile: responsAbility

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

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: responsAbility Microfinance Leaders Fund (rAMLF)

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