MICROCAPITAL BRIEF: Social Investment Company responsAbility Makes Debt Investments Totaling $2.5m in FINCA Kosovo and fondiBESA of Albania

responsAbility Social Investments AG (responsAbility), a social investment company founded in 2003 in Switzerland, reported to MicroCapital that it made four debt investments during the month of August totaling EUR 2 million (USD 2.5 million) to microfinance institutions (MFIs) Foundation for International Community Assistance (FINCA) Kosovo and fondiBESA of Albania.

The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle managed by responsAbility, made a debt investment of EUR 750,000 (USD 951,525) in FINCA Kosovo, an affiliate of FINCA International, a microfinance network serving 700,000 people through its subsidiaries in 21 countries, at a floating rate based on the six-month USD London Interbank Offered Rate (LIBOR) rate for a period of 36 months. Similarly, the responsAbility Microfinance Leaders Fund (rAMLF), another microfinance investment vehicle managed by responsAbility, made a debt investment of EUR 250,000 (USD 317,175) in FINCA Kosovo under the same terms.

fondiBESA, an Albanian urban microcredit project with 11,000 borrowers formerly recognized as a division of the Albanian Development Fund, received debt investment measuring EUR 750,000 (USD 951,525) from rAGMF at a floating rate based on the six-month USD LIBOR rate for a period of 36 months. fondiBESA also received a loan from responsAbility Mikrofinanz-Fondz, a microfinance investment vehicle managed by reponsAbility, and financed by German banks Bank im Bistum Essen and Stadtsparkasse Dusseldorf. This loan of EUR 250,000 (USD 317,175) was made under the same terms [1].

About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose investment products aim to enable people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized (SME) financing, fair trade and independent media. Private and institutional investors can potentially contribute to positive social development while earning a return. 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.

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 MIV certification organization founded in 2006 to promote the raising of capital for microfinance by certifying MIVs based on their direct or indirect investment in 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): rAMLF is a microfinance investment vehicle (MIV) that invests in large microfinance institutions (MFIs) through debt securities and equity investments. Investments range from USD 50,000 to USD 1.5 million. The Luxembourg Fund Labeling Agency (LuxFLAG), an MIV certification organization founded in 2006 to promote the raising of capital for microfinance by certifying MIVs based on their direct or indirect investment in the microfinance sector, renewed rAMLF’s label in April 2010. rAMLF reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse that it holds USD 159 million in fund assets as of 2010.

About Mikrofinanz-Fondz: Mikrofinanz-Fondz is a microfinance investment vehicle (MIV) operated under responsAbility Social Investments AG of Switzerland, and funded by German Bank im Bistum Essen and Stadtsparkasse D?sseldorf. The fund was created in 2007 and in April 2010 was certified by the Luxembourg Fund Labeling Agency (LuxFLAG), an MIV certification organization founded in 2006 to promote the raising of capital for microfinance by certifying MIVs based on their direct or indirect investment in the microfinance sector. Mikrofinance-Fondz reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it holds USD 103 million in fund assets as of 2010.

About FINCA International: FINCA International is a microfinance network serving 700,000 clients through its subsidiaries in 21 countries. FINCA International indicates that as of December 2009, it holds USD 31 million in total assets.

About fondiBESA: fondiBESA, is an Albanian microfinance institution (MFI) providing loans and grants to local entrepreneurs. It began as The Urban Micro Credit Project in 1994 and was formerly recognized as a division of the Albanian Development Fund. In 1999, it was spun off as fondiBESA, with the participation of the Soros Foundation. Today, fondiBESA works to ensure access to microloans and grants for Albanian micro- and small entrepreneurs. As of 2009, fondiBESA holds USD 43 million according to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.

By Diana Baide, Research Assistant

Sources and additional sources:

[1] Data submitted by responsAbility Social Investments AG to MicroCapital September 2010

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: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+(rAGMF)

MicroCapital’s Microfinance Universe profile: LuxFLAG https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG

MicroCapital’s Microfinance Universe profile: responsAbility Mikrofinanz-Fondz

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

MicroCapital’s Microfinance Universe profile: FINCA International

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

MicroCapital’s Microfinance Universe profile: fondiBESA

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

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

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