MICROCAPITAL BRIEF: Symbiotics Issues $30m in Bonds to MicroCred China; India’s Arohan, Grameen Koota, Annapura Microfinance

Symbiotics, a Switzerland-based investment company that focuses on emerging markets, has completed bond transactions worth a total of USD 30 million with MicroCred China, an affiliate of the France-based MicroCred and PlaNet Finance groups; Arohan Financial Services Private Ltd., an Indian financial services company; Grameen Financial Services Private Ltd., a Bangalore-based microfinance institution (MFI) also known as Grameen Koota; and Annapurna Microfinance Private Ltd., an MFI based in the Indian state of Odisha. The bond issued to MicroCred is worth USD 9.75 million, the one issued to Arohan is worth USD 10 million and those issued to the other two Indian institutions are worth USD 5 million. These bond transactions bring the total value of bond issuances by Symbiotics in Asia during 2014 to USD 75 million.

According to Daniel Schriber, the director of investment operations for Symbiotics, the company is “seeking to reach out to new markets where microfinance investments can make a difference. We are satisfied to be able to work for the first time in China and to continue to make a footprint in India in the regions where micro- and small enterprises have potential to grow.”

As of 2014, MicroCred China had a total loan portfolio of USD 85 million outstanding to 14,000 active borrowers. The institution does not accept deposits. MicroCred also has operations in China, Cote D’Ivoire, Madagascar, Mali, Nigeria and Senegal. As of July 2014, MicroCred Group reported total assets of EUR 171 million (USD 287 million) and a gross loan portfolio of EUR 143 million (USD 241 million) outstanding [2]. As of 2014, PlaNet Finance Group managed 73 projects in Africa, Asia, Europe and Latin America [3].

As of 2013, Arohan reported total assets of USD 37.9 million and a gross loan portfolio of USD 31.7 million outstanding to 220,000 active borrowers. As of 2012, the MFI reported return on assets (ROA) of -0.27 percent and return on equity (ROE) of -0.62 percent. As of 2014, Grameen Financial Services reported total assets of USD 161 million and a gross loan portfolio of USD 141 million outstanding to 543,000 active borrowers. As of 2012, it reported ROA of 2.19 percent and ROE of 12.6 percent. As of 2013, Annapurna Microfinance reported total assets of USD 36.3 million and a gross loan portfolio of USD 28.4 million outstanding to 159,000 active borrowers. As of 2012, the MFI reported ROA of 3.67 percent and ROE of 15.5 percent. None of the four MFIs accepts deposits. Since 2004, Symbiotics has invested approximately USD 1.9 billion in 200 MFIs globally.

By Benjamin Krupp, Research Associate

About Symbiotics Group

Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of micro- and small enterprise (MSE) development. Symbiotics works with approximately 28 investment funds (MIVs) and a dozen institutional investors. As of July 2014, Symbiotics provided USD 811 million in capital to about 803,000 micro-, small and medium-sized enterprises (MSMEs) through 150 financial institutions. The company also offers Syminvest, a microfinance investment intelligence platform designed to increase transparency and enhance investment capacity in the industry by monitoring regional markets as well as individual institutions.

About MicroCred Group

MicroCred Group creates microfinance institutions (MFIs) and provides technical assistance to MFIs. MicroCred was created by French NGO PlaNet Finance and three investors: the International Finance Corporation (IFC), Société Générale and AXA Belgium. Those founding shareholders were joined by the French Development Agency (AFD in French) and the European Investment Bank (EIB) in 2007 and Developing World Markets (DWM) in 2008. MicroCred has operations in China, Madagascar, Senegal, Cote D’Ivoire, Mali and Nigeria. As of July 2014, MicroCred Group reported total assets of EUR 171 million (USD 287 million) and a gross loan portfolio of EUR 143 million (USD 241 million) outstanding. MicroCred Nanchong of China, founded in 2006, held a gross loan portfolio of USD 85 million outstanding to 14,000 borrowers as of 2014. As of December 2012, MicroCred China reported total assets of USD 34.6 million, return on assets of 7.28 percent and return on equity of 14.11 percent.

About Arohan Financial Services

Arohan Financial Service Private Ltd. is a microfinance institution (MFI) based in Kolkata, India. Founded in 2006, it offers loans and life insurance primarily in urban areas of eastern India. As of 2013, Arohan reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 37.9 million and a gross loan portfolio of USD 31.7 million outstanding to 220,000 active borrowers. As of 2012, Arohan reported return on assets of -0.27 percent and return on equity of -0.62 percent. Arohan does not accept deposits.

About Grameen Koota

Grameen Financial Services Private Limited (GFSPL), popularly known as Grameen Koota, was founded in India in 1999 as a project of nongovernmental organization T Muniswamappa Trust and has since become an independent non-banking finance company (NBFC). GFSPL operates in the Indian states of Maharashtra, Karnataka and Tamil Nadu and offers products such as microloans, vocational training loans, workshops and access to educational centers. As of 2014, GFSPL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 161 million and a gross loan portfolio of USD 141 million outstanding to 543,000 active borrowers. As of 2012, Grameen reported return on assets of 2.19 percent and return on equity of 12.6 percent. The institution does not accept deposits.

About Annapurna Microfinance

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 2013, Annapurna Microfinance reported to the US-based Microfinance Information Exchange (MIX) total assets of USD 36.3 million and a gross loan portfolio of USD 28.4 million outstanding to 159,000 active borrowers. As of 2012, Annapurna reported return on assets of 3.67 percent and return on equity of 15.5 percent. This institution does not accept deposits.

Sources and Additional Resources

[1] Information provided to MicroCapital by Symbiotics

[2] MicroCred Group: Presentation October 2013

[3] PlaNet Finance: Key Statistics

MicroCapital, June 7, 2014: MicroVentures Invests $13.5m in Equity in Microfinance Institution Grameen Koota of India

MicroCapital, March 28, 2014: Annapurna Microfinance of India Raises $5m in Series B Financing from Belgian Investment Company for Developing Countries (BIO), Incofin

MicroCapital, October 8, 2012: Intellecap’s IntelleCash Microfinance Network Purchases 56% Stake in Arohan Financial Services of India

MicroCapital Universe Profile: Symbiotics Group

MicroCapital Universe Profile: MicroCred Group

MicroCapital Universe Profile: Arohan

MicroCapital Universe Profile: Grameen Financial Services Private Limited

MicroCapital Universe Profile: Annapurna Microfinance

MicroCapital Universe Profile: PlaNet Finance 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: