MICROCAPITAL BRIEF: Triodos Investment Management Disburses Loans to Micro-, Small, Medium-sized Enterprise (MSME) Lenders in Cambodia, Colombia, India, Jordan, Uzbekistan

Triodos Investment Management, a subsidiary of Netherlands-based Triodos Bank, recently disbursed loans of undisclosed amounts to Annapurna Microfinance, an Indian microfinance institution (MFI); Asociacion Fondo de Desarrollo (FDL), an MFI in Nicaragua; Crezcamos, a Columbian MFI; Hamkorbank, a commercial bank in Uzbekistan; Intean Poalroath Rongroeurng (IPR), an MFI in Cambodia; Intellegrow, a nonbanking financial company (NBFC) serving small and medium-sized enterprises (SMEs) in India; and Vitas Jordan, an Amman-based MFI [1]. Except for Hamkorbank, none of these institutions accept deposits.

The loans are being funded by: Hivos-Triodos Fund, a collaboration between the Netherlands-based Hivos Foundation and Triodos Bank; the Triodos Sustainable Finance Foundation, which aims to support sustainable banking in the microfinance sector; the Triodos Fair Share Fund, which allows retail investors in the Netherlands to invest in MFIs in developing countries; and Triodos Microfinance Fund, which enables institutional investors in Belgium, Denmark, Luxembourg, the Netherlands, and the UK to invest loans and equity in MFIs in developing countries.

As of 2013, Annapurna reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 36.4 million, a gross loan portfolio of USD 28.4 million, 158,600 active borrowers, return on assets (ROA) of 3.21 percent and return on equity (ROE) of 15.71 percent; FDL reported total assets of USD 76.8 million, a gross loan portfolio of USD 64.8 million, approximately 58,000 borrowers, ROA of 2.02 percent and ROE of 8.31 percent; Crezcamos reported total assets of USD 75 million, a gross loan portfolio of USD 64.7 million, approximately 66,900 borrowers, ROA of 5.47 percent and ROE of 21.42 percent; Hamkorbank reported total assets of USD 453 million, a gross loan portfolio of USD 161 million, deposits of USD 195 million and approximately 22,000 active borrowers; IPR reported total assets of USD 8.1 million, a gross loan portfolio of USD 6.6 million, and 4,100 active borrowers, ROA of 9.19 percent and ROE of 12.65 percent; and Vitas reported total assets of USD 36.7 million, a gross loan portfolio of USD 33.5 million, approximately 23,000 borrowers, ROA of 5.93 percent and ROE of 13.15 percent.

From 2012 through 2014, Intellegrow has disbursed approximately 48 loans totaling USD 8 million [2].

As of 2014, Triodos Investment Management had EUR 2.4 billion (USD 2.7 billion) in total assets under management.

By Nisha Koul, Research Associate

About Annapurna Microfinance Private Limited: 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 reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 36.4 million, a gross loan portfolio of USD 28.4 million, and 158,600 active borrowers, return on assets (ROA) of 3.21 percent and return on equity (ROE) of 15.71 percent. The institution does not accept deposits.

About Asociacion Fondo de Desarrollo (FDL): FDL aims to improve the social and economic condition of low-income people, especially in rural areas. It provides “green loans” to farmers to promote environmentally friendly farming practices. As of 2013, FDL reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 76.8 million, a gross loan portfolio of USD 64.8 million, approximately 58,000 borrowers, return on assets (ROA) of 2.02 percent and return on equity (ROE) of 8.31 percent. FDL does not accept deposits.

About Crezcamos: Columbian microfinance institution Crezcamos was established in 2008 and provides credit and insurance products to small businesses and entrepreneurs in the rural areas. Crezcamos reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 75 million, a gross loan portfolio of USD 64.7 million, approximately 66,900 borrowers, return on assets (ROA) of 5.47 percent and return on equity (ROE) of 21.42 percent as of 2013. Crezcamos does not accept deposits.

About Hamkorbank: Established in 1991, Hamkorbank is a joint stock commercial bank in Uzbekistan that provides financial services to its clients including microloans and loans to small and medium-sized enterprises (SMEs). As of 2013, Hamkorbank reported total assets of USD 453 million, a gross loan portfolio of USD 161 million, deposits of USD 195 million and approximately 22,000 active borrowers.

About Intean Poalroath Rongroeurng (IPR): Intean Poalroath Rongroeurng (IPR) is a microfinance institution (MFI) founded in 2005 in Phnom Penh, Cambodia. The MFI makes individual loans to farmers and agribusinesses in rural areas. According to the US-based nonprofit Microfinance Information Exchange (MIX), IPR had assets of USD 8.1 million, a gross loan portfolio of USD 6.6 million, and 4,100 active borrowers, return on assets (ROA) of 9.19 percent and return on equity (ROE) of 12.65 percent as of 2013. IPR does not accept deposits.

About Intellegrow: Intellegrow is a nonbanking financial company (NBFC) based in the city of Mumbai, India. It was founded in 2012 by Indian consultancy firm Intellecap Capital Advisory Services with support from Shell Foundation, a UK-based charity promoting social investment that was founded by energy firm Royal Dutch Shell. IntelleGrow offers debt financing, technical assistance and training to early stage, small and medium-sized enterprises (SMEs) that have a track record of at least 12 months of operations and revenues less than INR 500 million (USD 8.1 million). Since its inception through 2014, IntelleGrow has disbursed approximately 48 loans totaling USD 8 million targeting SMEs operating in the energy, agriculture supply chain, sanitation, healthcare, education and financial inclusion sectors.

About Vitas Jordan: Vitas Jordan is a for-profit microfinance institution (MFI) formerly known as the Middle East Micro Credit Company (MEMCC). It was founded in 1998 to provide loans to micro-, small and medium-sized enterprises (MSMEs). As of 2013, Vitas reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 36.7 million, a gross loan portfolio of USD 33.5 million, approximately 23,000 borrowers, return on assets (ROA) of 5.93 percent and return on equity (ROE) of 13.15 percent. Vitas Jordan does not accept deposits.

About Triodos Investment Management: Triodos Investment Management BV, a wholly owned subsidiary of Triodos Bank of the Netherlands, manages funds in a range of sectors including financial sector development in developing countries, renewable energy finance and venture capital. As of 2014, Triodos Investment Management had EUR 2.4 billion (USD 2.7 billion) in total assets under management. The organization finances 112 microfinance institutions in 45 countries.

Sources and Additional Resources:

[1] Triodos Bank, New expansions in emerging markets

[2] Intellegrow, Portfolio

MicroCapital Story, January 2015, Triodos Investment Management Invests in Tunisia’s Enda Inter-Arabe, Uganda’s Entrepreneur Financial Centre

MicroCapital Story, January 2015, Triodos Investment Management Invests in Tunisia’s Enda Inter-Arabe, Uganda’s Entrepreneur Financial Centre

MicroCapital Story, November 2014, Hivos-Triodos Fund (HTF) Loans $3.1m to India’s IntelleGrow for Loans to Small, Medium-Sized Enterprises

MicroCapital Story, February 2014, Triodos Investment Management Loans $1m each to Advans Banque Congo, Microfinance Institution (MFI) Vitas Jordan

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