MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $2.9m to CREDIT of Cambodia, Sathapana Limited of Cambodia, HUMO and Partners of Tajikistan, Community Economic Ventures Incorporated (CEVI) of the Philippines

responsAbility Social Investments AG, an investment company based in Switzerland, has recently reported to MicroCapital that it has made loans totaling the equivalent of USD 2.9 million to microfinance institutions (MFIs) in Cambodia, Tajikistan and the Philippines.

The responsAbility Microfinance Leaders Fund (rAMLF) and the responsAbility Global Microfinance Fund (rAGMF), microfinance investment vehicles (MIVs) managed by responsAbility, invested USD 862,000 and USD 287,000 respectively in CREDIT, a Cambodian MFI [1]. In 2009, CREDIT reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 24.5 million, a gross loan portfolio of USD 22.4 million, approximately 39,300 borrowers, return on assets (ROA) of 1.47 percent and return on equity (ROE) of 6.65 percent.

rAGMF also loaned USD 1 million to another Cambodian MFI, Sathapana Limited [1]. In 2009, Santhapana Limited reported to MIX total assets of USD 43.5 million, a gross loan portfolio of USD 39.7 million, approximately 36,200 borrowers, ROA of 4 percent and ROE of 26 percent.

In Tajikistan, rAGMF invested USD 500,000 in HUMO and Partners, an MFI that also provides consulting services to assist in the development of small businesses [1]. In 2009, HUMO reported to MIX total assets of USD 6.2 million, a gross loan portfolio of USD 3.3 million, approximately 7,700 borrowers, ROA of 6.8 percent and ROE of 24.8 percent.

rAGMF invested approximately PHP 13 million (USD 300,400) in Community Economic Ventures Incorporated (CEVI), an MFI in the Philippines [1]. In 2009, CEVI reported to MIX total assets of USD 3.7 million, a gross loan portfolio of USD 2.5 million, approximately 25,300 borrowers, ROA of 0.5 percent and ROE of 1.5 percent.

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 assisting 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 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 investment vehicles actually support the microfinance sector. rAGMF reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 million in fund assets as of 2010.

About CREDIT:
Established in 1993 by US nonprofit World Relief Corporation, CREDIT is a Cambodian microfinance institution (MFI) that offers its clients financial services and complementary services such as debt management training, savings and budgeting. CREDIT’s partners include Kiva, Tear Fund New Zealand, Eriks, Tear Netherlands, International Development Enterprise (IDE) and Hagar Cambodia. In 2009, CREDIT reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 24.5 million, a gross loan portfolio of USD 22.4 million, approximately 39,300 borrowers, return on assets (ROA) of 1.47 percent and return on equity (ROE) of 6.65 percent.

About Sathapana Limited:
First established as an NGO called the Cambodian Entrepreneur Building Limited (CEB), Sathapana Limited registered in 2001 under its current name with the National Bank of Cambodia (NBC) as a Cambodian microfinance institution (MFI). In 2009, Santhapana Limited reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 43.5 million, a gross loan portfolio of USD 39.7 million, approximately 36,200 borrowers, return on assets (ROA) of 4 percent and return on equity (ROE) of 26 percent.

About HUMO and Partners:
Based in Tajikistan and founded in 2004 by the local affiliate of Switzerland based NGO CARE International, HUMO and Partners is a microfinance institution (MFI) that serves micro- and small businesses. In addition to microcredit services, HUMO offers consulting services in cash flow analysis and business plan drafts. In 2009, HUMO reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 6.2 million, a gross loan portfolio of USD 3.3 million, approximately 7,700 borrowers, return on assets (ROA) of 6.8 percent and return on equity (ROE) of 24.8 percent.

About Community Economic Ventures Incorporated (CEVI):
Established in 2000 in the Philippines, Community Economic Ventures Incorporated (CEVI) is an NGO that provides credit, training and savings services to its clients. In 2009, CEVI reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 3.7 million, a gross loan portfolio of USD 2.5 million, approximately 25,300 borrowers, return on assets (ROA) of 0.5 percent and return on equity (ROE) of 1.5 percent.

Source and Resources:
[1] Data submitted by responsAbility Social Investments AG to MicroCapital, February 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.org story, February 4, 2011, “MICROCAPITAL BRIEF: responsAbility Social Investments of Switzerland Makes Loans Totaling $10m to FINCA International Subsidiaries in Azerbaijan, Russia, Ecuador and Mexico”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-of-switzerland-makes-loans-totaling-10m-to-finca-international-subsidiaries-in-azerbaijan-russia-ecuador-and-mexico/

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: CREDIT, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Credit+Microfinance+Institution

MicroCapital’s Microfinance Universe Profile: Sathapana Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=sathapana

MicroCapital’s Microfinance Universe Profile: HUMO and Partners,  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=HUMO+and+Partners

MicroCapital’s Microfinance Universe Profile: Community Economic Ventures Incorporated (CEVI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Community+Economic+Ventures+Incorporated+%28CEVI%29

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

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