MICROCAPITAL STORY: Swiss responsAbility Loans $6.4m to Eastern European and Central Asian Microfinance Institutions

CGAP (Consultative Group to Assist the Poor) recently reported that responsAbility Global Microfinance Fund (rAGMF) made loans to several Eastern European and Central Asian microlenders: USD 221,112 to Mikro Aldi, USD 400,000 to HUMO, USD 737,040 to AgroInvest, USD 1,000,000 to Kompanion, USD 1,000,000 to Constanta, USD 1,500,000 to Bai Tushum and USD 1,500,000 to Eskhata Bank.

Established in 2003, the rAGMF fund was created by Switzerland-based responsAbility, an asset management firm that aims to connect social investors with microfinance institutions in need of capital. According the fund’s April 2008 monthly report, rAGMF held 163 active microfinance investments totaling USD 224.5 million, and reported total fund assets of USD 250.5 million. Ninety four percent of the fund’s portfolio represents debt investments; the remaining six percent are equity. The fund is managed by Credit Suisse Microfinance Fund Management Company.

Mikro Aldi is a Balkan non-bank financial institution that provides microloans to clients in Southeast Bosnia and Herzegovina. Microfinance information provider MIX Market reports that Mikro Aldi held total assets of USD 4.64 million, a gross loan portfolio of USD 4.32 million, a debt-equity ratio of 132.23 percent and return on assets of 7.58 percent, as of December 2007. Since its inception in 1996, the organization has expanded its services to 3,100 borrowers. Last rated in 2005, Mikro Aldi received a BBB- from Italian microfinance rating agency Microfinanza.

Founded in 2005, HUMO is a non-bank financial institution that provides microloans and grants, and proclaims its mission is “to support marginalized population and the micro and small enterprises with finance and consulting services.” Based in Dushanbe, Tajikistan, the microlender had total assets of USD 2.64 million, a gross loan portfolio of USD 2.48 million, a debt-equity ratio of 123.52 percent and reported return on assets of 17.77 percent. As of December 2007 the organization served 4,302 borrowers. HUMO received a BB in 2006 from Microfinanza rating agency.

AgroInvest is a non-bank financial institution that provides services to rural clients in Serbia and Montenegro. Established in 1999 by World Vision International, a faith-based humanitarian organization, the organization served 33,194 borrowers as of December 2007. As reported by MIX Market, AgroInvest’s had total assets of USD 76.6 million, a debt-equity ratio of 248.52 percent and return on assets of 5.29 percent. Last rated in March 2006, it received an A- from Planet Rating, a French rating agency specializing in microfinance institutions. In 2007, Forbes Magazine ranked AgroInvest 22nd on its list of the Top 50 microfinance institutions. More information on this ranking can be found in this MicroCapital story.

Kompanion is a community development financial institution based in Kyrgyzstan, formed in 2004 from a merger of several micro-credit agencies. According to MIX Market, at the end of 2007, Kompanion reported total assets of USD 29.2 million, an increase of USD 21 million from its reported assets for 2006. It held a gross loan portfolio of USD 21.3 million, a debt-to-equity ratio of 108.78 percent, and return on assets of 7.14 percent. Kompanion’s client base has grown to over 40,000 borrowers in just three years of operation.

Founded in 1997, Constanta is registered as a non-governmental organization that focuses on microlending throughout Georgia. According to MIX Market, as of December 2007 Constanta had total assets of USD 40.0 million, a gross loan portfolio of USD $27.5 million and a debt to equity ratio of 321.53 percent. It served 14,653 clients as of December 2007, and was rated A+ by Planet Rating in 2006. Its return on assets was 3.05 percent as of December 2006.

Bai Tushum is a non-bank financial institution established in Kyrgyzstan in 2000. At the end of 2007, Bai Tushum had total assets of USD 34.7 million, a gross loan portfolio of USD 23.4 million, a debt-equity ratio of 391.38 percent and reported return on assets of 5.68 percent. The organization served 10,695 borrowers as of December 2007, an increase of 6,000 since December 2006. Last rated in 2004, Bai Tushum received an A+ from Microfinanza rating agency.

Founded in 1994, Eskhata is a full service bank operating in Tajikistan. Microlending constitutes 51-60 percent of the bank’s business, according to MIX Market. At the end of 2006, Eskhata had total assets of USD 26.3 million, a gross loan portfolio of USD 11.7 million, a debt-equity ratio of 292.53 percent and reported return on assets of 9.00 percent. Rating data on Eskhata is not available.

By Ryan Benson, Research Assistant

Additional Resources:

The Consultative Group to Assist the Poor: Home

The Consultative Group to Assist the Poor: Recent list of transactions

rAGMF: Home

responsAbility: Home

rAGMF: fund’s April 2008 monthly report

Credit Suisse: Home

Mikro Aldi: Home

MIX Market: Mikro Aldi

Microfinanza: Home

HUMO: Home

MIX Market: HUMO

AgroInvest: Home

MIX Market: AgroInvest

World Vision International: Home

Planet Rating: Home

Forbes: The World’s Top 50 Microfinance Institutions

MicroCapital Story: Forbes’ Special Feature on Private Investment in Microfinance Includes Top 50 Microfinance Institutions, by Sophie Kim, January 21, 2008

MIX Market: Kompanion

Constanta: Home

MIX Market: Constanta

Bai Tushum: Home

MIX Market: Bai Tushum

Eskhata: Home

MIX Market: Eskhata

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