MICROCAPITAL BRIEF: responsAbility Invests $13.5m in Microfinance Institutions (MFIs) VisionFund Cambodia, Equity Bank of Kenya

responsAbility Social Investments AG, a Swiss for-profit company that operates four microfinance investment vehicles (MIVs), recently reported to MicroCapital that it has made debt investments of USD 13.5 million in microfinance institutions (MFIs) Equity Bank of Kenya and VisionFund Cambodia. The loans have been disbursed through three MIVs: the responsAbility Global Microfinance Fund (rAGMF), which makes short- and medium-term investments in MFIs and MIVs; the responsAbility Microfinance Leaders Fund (rAMLF), which primarily invests in large MFIs; and the responsAbility Mikrofinanz-Fonds, which provides debt financing to MFIs.

In Kenya, responsAbility Mikrofinanz-Fonds and rAMLF have each invested USD 2.5 million and rAGMF has invested USD 7.5 million in Equity Bank, a deposit-taking MFI. As of December 31, 2010, Equity Bank reported to the US-based Microfinance Information Exchange (MIX), total assets of USD 1.66 billion, a gross loan portfolio of USD 925 million, return on assets (ROA) of 6.43 percent, return on equity (ROE) of 28.6 percent and 525,000 active borrowers.

VisionFund Cambodia, an MFI that is a member of the  VisionFund International network, borrowed USD 700,000 from rAGMF and USD 300,000 from rAMLF. As of December 31, 2010, VisionFund Cambodia reported to MIX total assets of USD 36.6 million, a gross loan portfolio of USD 30 million, ROA of 2.81 percent, ROE of 10.9 percent and 108,000 active borrowers. As of 2010, VisionFund supported 40 affiliate MFIs which reported total assets of USD 418 million, a gross loan portfolio of USD 341 million and approximately 638,000 active borrowers.

As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion.

By Rohan Trivedi, Research Associate

About Equity Bank:
Equity Bank, founded in 1984, is a microfinance bank based in Nairobi, Kenya, that provides loans, savings and fund transfer services and is funded through deposits and shareholder capital. In 2008, the Equity Bank Group expanded into South Sudan and Uganda. As of December 31, 2010, Equity Bank reported to the US-based Microfinance Information Exchange (MIX), total assets of USD 1.66 billion, a gross loan portfolio of USD 925 million, return on assets (ROA) of 6.43 percent, return on equity (ROE) of 28.6 percent and 525,000 active borrowers.

About VisionFund Cambodia:
VisionFund Cambodia is a microfinance institution (MFI) that provides credit and savings services. VisionFund Cambodia is a subsidiary of VisionFund International, which handles microfinance activities in 40 countries for World Vision, a Christian relief organization based in the US. As of December 31, 2010, VisionFund Cambodia reported to the US-based Microfinance Information Exchange (MIX), total assets of USD 36.6 million, a gross loan portfolio of USD 30 million, return on assets (ROA) of 2.81 percent, return on equity (ROE) of 10.9 percent and 108,000 active borrowers.

About VisionFund International:
VisionFund International was created in 2003 as a wholly owned subsidiary of World Vision with the purpose of managing its microfinance institutions (MFIs). As of 2010, VisionFund supported 40 affiliate MFIs who reported total assets of USD 418 million, a gross loan portfolio of USD 341 million and approximately 638,000 active borrowers. VisionFund fully owns five MFIs: VisionFund CREDO of Georgia; AgroInvest of Serbia; AgroInvest of Montenegro; Azercredit of Azerbaijan; and VisionFund Cambodia.

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. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. 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 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 short to medium-term income-bearing debt securities of microfinance institutions (MFIs). In April 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. Mikrofinanz-Fonds reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 141 million in 2011.

About responsAbility Global Microfinance Fund (rAGMF):
The responsAbility Global Microfinance Fund (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 April 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) fund assets of USD 532 million in 2011.

About responsAbility Microfinance Leaders Fund (rAMLF):
The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. In April 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. rAMLF reported to the US-based nonprofit Microfinance Information Exchange (MIX) fund assets of USD 155 million in 2011.

Sources and Additional Resources:

[1] Information submitted by responsAbility to MicroCapital, September 2011.

MicroCapital.org story, August 12, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $749k to Pearl Microfinance Limited of Uganda, Association Al Karam de Micro Credit of Morocco”, https://www.microcapital.org/microcapital-brief-responsability-loans-749k-to-pearl-microfinance-limited-of-uganda-association-al-karama-de-micro-credit-of-morocco/

MicroCapital.org story, November 9, 2010: “MICROCAPITAL BRIEF: responsAbility Social Investments Invests $12.5m in Microfinance Institutions (MFIs) ProCredit Holding and VisionFund Cambodia”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-invests-12-4m-in-microfinance-institutions-mfis-procredit-holding-and-visionfund-cambodia/

MicroCapital Universe Profile: Equity Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Equity+Bank

MicroCapital Universe Profile: VisionFund Cambodia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+Cambodia

MicroCapital Universe Profile: VisionFund International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+International

MicroCapital Universe Profile: responsAbility Social Investments AG, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility

MicroCapital Universe Profile: responsAbility Mikrofinanz-Fonds, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

MicroCapital Universe Profile: responsAbility Global Microfinance Fund (rAGMF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+%28rAGMF%29

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

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

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