MICROCAPITAL BRIEF: Social Investment Company responsAbility Invests $5.5m in Microfinance Institutions (MFIs) Prasac of Cambodia and Credit Mongol of Mongolia

responsAbility Social Investments AG (responsAbility), an investment manager founded in 2003 in Switzerland, reported to MicroCapital that it recently made five debt investments totaling USD 5.5 million in microfinance institutions (MFIs) Prasac of Cambodia and Credit Mongol of Mongolia.

The responsAbility Global Microfinance Fund (rAGMF), a microfinance investment vehicle (MIV) managed by responsAbility, made a debt investment of USD 2.5 million in Prasac, a private limited liability MFI established in 2004. Similarly, Mikrofinanz-Fonds, an MIV managed by reponsAbility and financed by German banks Bank im Bistum Essen and Stadtsparkasse Dusseldorf made a debt investment of USD 1.5 million in Prasac. Lastly, the responsAbility Microfinance Leaders Fund (rAMLF), another microfinance investment vehicle managed by responsAbility made a debt investment of USD 1 million in Prasac. All three loans were made at a fixed annual interest rate of 6.3 percent for a period of 24 months. Prasac reported to the Microfinance Information Exchange (MIX) a gross loan portfolio of USD 64.4 million, total assets of USD 71.3 million and 87,945 active borrowers as of 2009.

In addition, Mikrofinanz-Fonds made a debt investment totaling USD 250,000 in Credit Mongol, a non-banking, limited liability MFI established in 2000, at a fixed rate of 9.25 percent for a period of 24 months. Lastly, rAGMF made a debt investment in Credit Mongol totaling USD 250,000 under the same terms. As of December 2008, Credit Mongol reports to the Microfinance Information Exchange (MIX) USD 4.9 million in assets, 1,524 active borrowers, a gross loan portfolio of USD 4.2 million, return on assets of 9.35 percent and return on equity of 26 percent.

About Prasac LLC: Prasac, formerly a credit component of the “Prasac Project,” funded by the European Union and implemented by the Royal Government of Cambodia, is a microfinance institution (MFI) in Cambodia. It was officially registered in 2004 with the Ministry of Commerce as a private limited liability company. According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, Prasac reported a gross loan portfolio of USD 64.4 million, total assets of USD 71.3 million and 87,945 active borrowers as of 2009.

About Credit Mongol LLC: Credit Mongol LLC is a non-banking microfinance institution (MFI) established as a limited liability company in 2000 in Mongolia as part of the European Union Tacis Programme, which seeks to help partner states in Eastern Europe and Central Asia transition into market economies. Credit Mongol aims to provide microloans to small and medium-sized enterprises and currently serves six regions in Mongolia. As of December 2008, Credit Mongol reports USD 4.9 million in assets, 1,524 active borrowers, a gross loan portfolio of USD 4.2 million, a return on assets of 9.35 percent and a return on equity of 26 percent to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.

By Diana Baide, Research Assistant

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

MicroCapital’s Microfinance Universe profile: Prasac

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

MicroCapital’s Microfinance Universe profile: Credit Mongol LLC

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Credit+Mongol+LLC

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