MICROCAPITAL STORY: Triodos-Doen and the Hivos-Triodos Fund Invests $1.3M in HUMO Micro Lending Fund, Alter Modus Montenegro and Kazakhstan Microcredit Organization Bereke

 The Consultative Group to Assist the Poor (CGAP) recently reported the Triodos-Doen Foundation and Hivos-Triodos Fund of the Netherlands invested USD 1.3 million in three Eastern European and Central Asian (EAC) microfinance institutions. Triodos-Doen invested loans of USD 251,000 in Micro Lending Fund HUMO of Tajikstan and USD 737,000 in Alter Modus in Montenegro. Hivos-Triodos invested USD 301,000 in loans to Kazakhstan Microcredit Organization Bereke.

Formed in 1994, Triodos-Doen, a partnership between Triodos Bank of the Netherlands and the Doen Foundation, invests in microfinance institutions in the form of loans and equity investments.  With a portfolio of USD 60.7 million as of June 2007, they support the growth of the microfinance sector on a global scale.

Hivos-Triodos Fund is a Triodos Bank partnership with the Humanist Institute for Cooperation with Developing Countries (Hivos). The Hivos-Triodos Fund was established in 1994, encouraging and facilitating Triodos Bank’s clients to become involved in global microfinance activities by investing through special savings accounts. Their portfolio is currently at USD 51.5 million.

Micro Lending Fund HUMO was first established in 1996 as a Tajikistani branch of CARE International, implementing micro-credit programs to help alleviate poverty. In 2005, CARE Tajikistan was transformed into an independent, locally registered Micro Lending Fund (MLF) with the name HUMO. HUMO micro-loan activities focus on the development of the local microfinance sector including the increase of employment opportunities through small and micro-enterprises. They provide loans for livestock, service/production, business/trading, agriculture, consumer loans, and training and consulting. Currently, MLF HUMOS serves 4,300 active borrowers with a gross loan portfolio of USD 2.5 million and total assets of USD 2.6 million. Their return on assets (ROA) is 17.77 percent with a 32.77 percent return on equity (ROE) as of the end of 2007.

Alter Modus in Montenegro is a non-bank microfinance institution based out of Serbia and Montenegro providing financial services to support small and micro enterprises. According to a 2005 EBRD press release, Alter Modus was established in 1999, and is licensed and regulated by the Central Bank of Montenegro. As of 2005, the institution was serving 5,400 active clients with a loan portfolio of USD 8.1 million.

Kazakhstan Microcredit Organization Bereke is a non-profit NGO founded in 2003 with a focus on local economic development. The institution provides financial services including group loans and individual loans. They currently serve over five thousand active borrowers with a gross loan portfolio of USD 3.6 million. Bereke’s total assets were reported at USD 2.2 million with a return on assets (ROA) of 12.76 percent and a return on equity (ROE) of 14.37 percent as of 2006.

By Melissa Duscha

Additional Resources:

The Consultative Group to Assist the Poor (CGAP)

The Consultative Group to Assist the Poor (CGAP) recent list of transactions

The Doen Foundation

MICROCAPITAL STORY: Microfinance Institution Uganda Financial Trust Limited Recently Receives Investments Totaling USD 1.18 Million from Triodos-Doen and Hivos-Triodos Fund

Triodos Bank

Triodos-Doen: MIX Market Profile

MICROCAPITAL STORY: Alter Modus of Serbia & Montenegro Accepts an Additional $384,150 in Microfinance Investment from Triodos-Doen

EBRD lends Alter Modus €2 million

MLF HUMO: MIX Market Profile

Micro Lending Fund HUMO

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