Triodos Investment Management, a Netherlands-based manager of four microfinance investment funds, recently reported to MicroCapital that it has invested an undisclosed amount of funds in the following five microfinance institutions (MFIs): DemirBank of Azerbaijan; First Microfinance Bank – Tajikistan (FMFB-TJK) and Arvand, both of Tajikistan; Arnur Credit of Kazakhstan; and Kompanion Financial Group Microfinance Closed Joint Stock Company (Kompanion) of Kyrgyzstan [1]. DemirBank, FMFB-TJK and Arvand are new additions to the funds’ portfolio.
Azerbaijan-based DemirBank is a commercial bank that lends to small and medium-sized enterprises. As of 2010, DemirBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 418 million, a gross loan portfolio of USD 324 million, approximately 34,500 borrowers, return on assets (ROA) of 1.10 percent and return on equity (ROE) of 7.55 percent.
FMFB-TJK, which is affiliated with the Swiss development agency Aga Khan Development Network (AKDN), provides financial services to poor people throughout Tajikistan. As of 2010, FMFB-TJK reported to MIX total assets of USD 44 million, a gross loan portfolio of USD 25.4 million, approximately 12,500 borrowers, ROA of -1.37 percent and ROE of -16.7 percent.
Arvand is a deposit-taking MFI in Tajikistan that provides microcredit, deposit and microleasing services to low-income individuals in urban areas. As of 2010, Arvand reported to MIX total assets of USD 11.5 million, a gross loan portfolio of USD 8.5 million, approximately 12,200 borrowers and ROA of 5.49 percent and ROE of 21.7 percent.
Arnur Credit is a Kazakhstan-based MFI providing microcredit services. As of December 31, 2010, it reported to MIX total assets of USD 7.5 million, a gross loan portfolio of USD 6.1 million, 3,100 active borrowers, ROA of 2.23 percent and ROE of 6.13 percent.
Kompanion is a community development financial institution in Kyrgyzstan. As of December 31, 2010, Kompanion reports to MIX total assets of USD 50 million, a gross loan portfolio of USD 30 million, approximately 119,000 active borrowers, ROA of 4.78 percent and ROE of 20.82 percent.
Triodos manages the Hivos-Triodos Fund, the Triodos-Doen Foundation, the Triodos Fair Share Fund and the Triodos Microfinance Fund. As of December 31, 2010, Triodos’ four microfinance funds had a total of USD 338 million in assets under management invested in approximately 90 MFIs in 43 countries.
By Nisha Koul, Research Associate
About Triodos Investment Management (Triodos): Triodos Investment Management manages several funds that provide risk capital including Triodos Venture Capital Fund BV and Triodos Ventures BV. The firm invests specifically in financial sectors development in developing countries, renewable energy finance and venture capital. Triodos also manages four microfinance investment funds: the Hivos-Triodos Fund, the Triodos-Doen Foundation, the Triodos Fair Share Fund and Triodos Microfinance Fund. As of June 2011, Triodos’ four microfinance funds had EUR 250 million (USD 360 million) in assets under management.
About DemirBank: DemirBank, a commercial bank in Azerbaijan, was established as Azjeldorbank in 1989 under license of the USSR State Bank. In 2005, the European Bank for Reconstruction and Development (EBRD) became one of the shareholders of DemirBank, and as of 2010 EBRD holds 25 percent of the stock of the bank. Also, as of 2010, DemirBank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 418 million, a gross loan portfolio of USD 324 million, approximately 34,500 borrowers, return on assets (ROA) of 1.10 percent and return on equity (ROE) of 7.55 percent.
About First MicroFinance Bank – Tajikistan: First MicroFinance Bank – Tajikistan (FMFB-TJK) provides financial services to the poor throughout the country. The bank is affiliated with the Aga Khan Development Network (AKDN), a group of development agencies that work in health, culture, education and economic development primarily in Asia and Africa. As of 2010, FMFB-TJK reported to Microfinance Information Exchange (MIX) total assets of USD 44 million, a gross loan portfolio of USD 25.4 million, approximately 12,500 borrowers, ROA of -1.37 percent and ROE of -16.7 percent.
About Arvand: Established in Tajikistan in 2002 by ACDI/VOCA (Agricultural Cooperative Development International/Volunteers in Overseas Cooperative Assistance), a US-based nonprofit, Arvand was set up to provide microcredit to low-income individuals in urban areas. In addition to microcredit, Arvand provides deposit and microleasing services to its clients. As of 2010, Arvand reported to Microfinance Information Exchange (MIX) total assets of USD 11.5 million, a gross loan portfolio of USD 8.5 million, approximately 12,200 borrowers and ROA of 5.49 percent and ROE of 21.7 percent.
About Arnur Credit: Arnur Credit is a microfinance institution (MFI) that provides microcredit in Kazakhstan. As of December 31, 2010, Arnur Credit reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 7.5 million in assets, a gross loan portfolio of USD 6.1 million, return on assets (ROA) of 2.23 percent, return on equity (ROE) of 6.13 percent and 3,175 active borrowers.
About Kompanion: Kompanion Financial Group Microfinance Closed Joint Stock Company was established in Kyrgyzstan in 2004 through the consolidation of five microcredit agencies affiliated with Mercy Corps, an economic development and aid organization based in the United States. Kompanion is a “community development financial institution that seeks to combine conservation and development goals.” As of December 31, 2010, Kompanion reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 50 million, a gross loan portfolio of USD 30 million, return on assets (ROA) of 4.78 percent, return on equity (ROE) of 20.82 percent and 119,000 active borrowers.
Sources and Additional Resources:
[1] Information submitted by Triodos to MicroCapital, October 2011
MicroCapital.org story, June 15, 2011, “MICROCAPITAL BRIEF: Triodos Invests in Microfinance Institutions (MFIs) KixiCrédito of Angola, Advans Ghana, Arnur Credit of Kazakhstan, Belarusian Bank for Small Business, Kompanion of Kyrgyzstan,” https://www.microcapital.org/microcapital-brief-triodos-invests-in-microfinance-institutions-mfis-kixicredito-of-angola-advans-ghana-arnur-credit-of-kazakhstan-belarusian-bank-for-small-business-kompanion-of-kyrgyzstan/
MicroCapital Universe Profile: Triodos Investment Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triodos+Investment+Management
MicroCapital Universe Profile: DemirBank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=DemirBank
MicroCapital Universe Profile: First MicroFinance Bank – Tajikistan, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=First+MicroFinance+Bank+-+Tajikistan
MicroCapital Universe Profile: Aga Khan Development Network, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Aga+Khan+Development+Network
MicroCapital Universe Profile: Arvand, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arvand
MicroCapital Universe Profile: Arnur Credit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arnur+Credit
MicroCapital Universe Profile: Kompanion, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kompanion+Financial+Group+Microfinance+Closed+Joint+Stock+Company
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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