MICROCAPITAL BRIEF: Symbiotics Group Issues “Impact” Finance Bonds of $9m for India’s Fusion Microfinance Private Limited, $7.5m to Sri Lanka’s LOMC, $3.5m to India’s Saija

Symbiotics Group, a Switzerland-based for-profit investment intermediary, recently informed MicroCapital that it has issued local-currency bonds equivalent to the following: USD 9 million for Fusion Microfinance Private Limited, an Indian non-banking financial company; USD 7.5 million to Sri Lanka-based LOLC Micro Credit Limited (LOMC), the microfinance arm of Lanka Orix Leasing Company (LOLC); and USD 3.5 million to Saija Finance Private Limited, another non-banking financial company based in India. The bond buyers have not been identified.

As of July 2016, Fusion reported a gross loan portfolio of INR 695 crore (USD 100 million) and 526,000 active borrowers. As of 2014, Saija reported to the US-based nonprofit Microfinance Information Exchange (MIX) USD 25 million in total assets, a gross loan portfolio of USD 20 million and 109,000 active borrowers. Neither of these institutions accepts deposits.

As of 2015, LOMC reported total assets of INR 20 billion(USD 298 million), deposits of USD 275 million, return on assets (ROA) of 3.73 percent and return on equity (ROE) of 20.3 percent.

As of August 2016, Symbiotics finances 1.3 million small businesses and households at the “base of the pyramid” through 197 financial institutions in 56 countries.

By Petra Barbu, Research Associate

About Fusion Microfinance Private Limited

Fusion Microfinance Private Limited is a non-banking financial company that was founded in 2010 and serves 11 Indian states. During its first year of existence, Fusion acquired the microfinance division of Aajeevika, an Indian nonprofit. The organization’s vision is “to provide underprivileged women with economic opportunities.” Fusion offers loans with terms of 1.5 to 2 years in sizes ranging from INR 12,000 (USD 180) to INR 30,000 (USD 450) through a network of 197 branches. As of July 2016, Fusion reported a gross loan portfolio INR 695 crore (USD 100 million) and 526,000 active borrowers. It does not accept deposits.

About LOLC Micro Credit Ltd.

LOLC Micro Credit Limited (LOMC) provides individual and group loans for microentrepreneurs in Cambodia and rural Sri Lanka. Founded in 2009, LOMC is the microfinance arm of Lanka Orix Leasing Company (LOLC), a Sri Lankan financial services provider launched in 1980 by the World Bank Group’s International Finance Corporation, the Sri Lankan government and Japan’s Orix Corporation.
In Cambodia, LOMC has 128 branches providing loans and savings.As of 2015, LOMC reported total assets of INR 20 billion(USD 298 million), deposits of USD 275 million, return on assets (ROA) of 3.73 percent and return on equity (ROE) of 20.3 percent.

As of September 2014, LOLC has a controlling share of 60-percent in Thaneakea Phum (Cambodia) (TPC), a microfinance institution in Cambodia, through its microfinance operations subsidiary LOLC Micro Investments Limited (LOMI). As of March 2014, LOLC reported USD 1.3 billion in total assets. LOLC is a member of the Japanese conglomerate Orix.

About Lanka Orix Leasing Company

Lanka Orix Leasing Company (LOLC) was incorporated in March 1980 in Rajagiriya, Sri Lanka. It is a publically listed company that provides leasing finance to companies for the acquisition of machinery and equipment. In 2009, LOLC established a microfinance subsidiary, Lanka Orix Microcredit Company (LOMC), in partnership with Dutch development bank Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden (FMO). As of September 2014, LOLC has a controlling share of 60-percent in Thaneakea Phum (Cambodia) (TPC), a microfinance institution in Cambodia, through its microfinance operations subsidiary LOLC Micro Investments Limited (LOMI). As of March 2014, LOLC reported USD 1.3 billion in total assets. LOLC is a member of the Japanese conglomerate Orix.

About Saija Finance Private Limited

Saija Finance Private Limited is a non-banking finance company that provides microfinance services to poor people in northern India. Founded in April 2008, Saija offers financial services in the Indian states of Bihar, Chhattisgarh, Delhi, Jharkhand, Madhya Pradesh Rajasthan, and Uttar Pradesh. As of 2014, Saija reported to the US-based nonprofit Microfinance Information Exchange (MIX) USD 25 million in total assets, a gross loan portfolio of USD 20 million and 109,000 active borrowers.

About Symbiotics Group

Founded in 2004, Switzerland-based Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of micro-, small and medium-sized enterprise (MSME) development. Its work is divided into Financial Institutions, Asset Management and Investor Relations teams. As of 2016, its Financial Institutions team had facilitated USD 2.4 billion in MSME investments via 2,000 deals, 28 funds, investors and 275 financial institutions in 50 emerging economies. Its Asset Management team managed seven funds investing in microfinance and with a total of USD 450 million in assets. Its Investor Relations team coordinated a dozen impact investing funds and strategies, raised assets of USD 350 million. The company also offers Syminvest, a microfinance investment information platform designed to increase transparency and enhance investment capacity in the industry by monitoring regional markets as well as individual institutions. As of August 2016, Symbiotics finances a total of 1.3 million small businesses and households at the “base of the pyramid” through 197 financial institutions in 56 countries.

Sources and Additional Resources:

[1] Information provided directly to MicroCapital by Symbiotics Group

[2] MicroCapital Universe Profile: Fusion Microfinance Private Limited

[3] MicroCapital Universe Profile: LOLC Micro Credit Ltd.

[4] MicroCapital Universe Profile: LOLC

[5] MicroCapital Universe Profile: Saija Finance Private Limited

[6] MicroCapital Universe Profile: Symbiotics Group

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: