MICROCAPITAL BRIEF: Symbiotics Issues $22m in Bonds to Benefit Indian Microfinance Institutions (MFIs) Annapurna, ESAF Microfinance and Investment (EMFIL), Satin Creditcare

Symbiotics, a Switzerland-based investment company that focuses on emerging markets, recently informed MicroCapital that it has completed bond transactions with a total value of USD 22 million. The bonds have been issued to undisclosed investors to benefit Annapurna Microfinance Private Limited, a microfinance institution (MFI) based in the Indian state of Odisha; ESAF Microfinance and Investment (EMFIL), an Indian non-banking financial institution that is promoted by the Evangelical Social Action Forum (ESAF), an NGO engaged in promoting microfinance; and Satin Creditcare Network Limited, a MFI based in the Indian state of Delhi. The bonds issued for Annapurna total USD 6 million, the securities issued for EMFIL are valued at USD 9 million and the bonds issued for Satin Creditcare are worth USD 7 million.

As of March 2015, Annapurna reported total assets of INR 4.8 billion (USD 71.2 million) and a gross loan portfolio of INR 3.9 billion (USD 58.7 million) outstanding to 403,000 borrowers. As of the same date, Annapurna reported return on assets (ROA) of 0.6 percent and return on equity (ROE) of 4.8 percent. As of March 2015, EMFIL reported total assets of INR 10 billion (USD 146 million) and a gross loan portfolio of INR 10 billion (USD 146 million) outstanding to 567,000 borrowers. As of the same date, ESAF reported ROA of 2.2 percent and ROE of 15.2 percent. As of March 2015, Satin Creditcare reported total assets of INR 20.1 billion (USD 296.2 million) and a gross loan portfolio of INR 21.4 billion (USD 315.3 million) outstanding to 1.2 million borrowers. As of the same date, Satin Creditcare reported ROA of 1.6 percent and ROE of 15.9 percent. As of March 2015, none of these institutions accept deposits.

By Kevin van den Brink, Research Associate

About Annapurna

Headquartered in the Indian city of Bhubaneswar, Annapurna Microfinance Private Limited is a for-profit microfinance company that is organized as a non-banking financial company. It was created in 1988 when the People’s Forum, a nonprofit development organization, decided to spin off the microfinance portion of its operations. As of March 2015, Annapurna reported total assets of INR 4.8 billion (USD 71.2 million) and a gross loan portfolio of INR 3.9 billion (USD 58.7 million) outstanding to 403,000 borrowers. As of the same date, Annapurna reported return on assets (ROA) of 0.6 percent and return on equity (ROE) of 4.8 percent. As of March 2015, Annapurna does not accept deposits.

About ESAF Microfinance and Investment (EMFIL)

Established in 1992 in the Indian state of Kerala, ESAF Microfinance and Investment Private Limited (EMFIL) is a non-banking financial institution that is promoted by the Evangelical Social Action Forum (ESAF), an NGO engaged in promoting self-help groups (SHGs) and other community development initiatives. It operates in the states of Chhattisgarh, Delhi, Kerala, Madhya Pradesh, Maharashtra and Tamil Nadu. As of March 2015, ESAF reported total assets of INR 10 billion (USD 146 million) and a gross loan portfolio of INR 10 billion (USD 146 million) outstanding to 567,000 borrowers. As of the same date, EMFIL reported return on assets (ROA) of 2.2 percent and return on equity (ROE) of 15.2 percent. As of March 2015, EMFIL does not accept deposits.

About Satin Creditcare

Established in 1990, Satin Creditcare Network Limited is a for-profit Indian microfinance institution based in Delhi that provides financial services to micro, small and medium-sized enterprises (SMEs). As of March 2015, Satin Creditcare reported a gross loan portfolio of INR 21.4 billion (USD 315.3 million) outstanding to 1.2 million borrowers. As of the same date, Satin Creditcare reported return on assets (ROA) of 1.6 percent and return on equity of return on equity (ROE) of 15.9 percent. As of March 2015, Satin Creditcare does not accept deposits.

About Symbiotics

Founded in 2004, Switzerland-based Symbiotics provides for-profit investment intermediary and business services to investors and practitioners of micro-, small and medium-sized enterprise (MSME) development. Its work is divided its Financial Institutions, Asset Management and Investor Relations teams. As of 2015, its Financial Institutions team had facilitated the provision of USD 2.4 billion in MSME investments via 2,000 deals through its work with 28 funds and other investors and 250 financial institutions in 50 emerging economies; its Asset Management team managed seven microfinance and SME impact funds with USD 450 million in assets; and its Investor Relations team coordinated a dozen impact investing funds and strategies and 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.

Sources and Additional Resources

[1] Information provided to MicroCapital by Symbiotics

[2] Annapurna, News, Annual Report 2015

[3] EMFIL, News, Annual Report 2015

[4] Satin Creditcare, News, Annual Report 2015

MicroCapital Universe Profile: Annapurna

MicroCapital Universe Profile: EMFIL

MicroCapital Universe Profile: Satin Creditcare

MicroCapital Universe Profile: Symbiotics

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