MICROCAPITAL.ORG STORY: responsAbility Global Microfinance Fund Makes Debt Investment of $2.5m in FINCA Azerbaijan

According to the CGAP Microfinance Dealbook, responsAbility Global Microfinance Fund recently made a debt investment of $2.5m in FINCA Azerbaijan. [1]

FINCA Azerbaijan, established in 1998, is part of FINCA International, an organization known for its village-banking system of microfinance. [2] As of 2008, according to the MIX Market, the clearing house of microfinance market information, the total assets of FINCA Azerbaijan equals almost USD 75.6 million, with 83,948 borrowers and a gross loan portfolio of almost USD 67 million. [3]

The responsAbility Global Microfinance Fund is a private investor and open-ended investment fund. The MIX market reports that in 2008 the fund’s assets totaled USD 347 million, of which USD 283 million are towards microfinance. According to an August 2009 monthly report by the fund, FINCA Azerbaijan is 1.7 percent of the fund’s total volume, making it one of the largest outstanding positions. [4]

By Radhika Chandrasekhar, Research Assistant

Bibliography

[1] CGAP Microfinance Dealbook. MicroCapital.org. https://www.microcapital.org/downloads/monitor_volume4/MicroCapitalMonitorPreview_Sep09.pdf

[2] About FINCA International.http://www.villagebanking.org/site/c.erKPI2PCIoE/b.2589455/k.5C65/ABOUT_FINCA_International.htm

[3] FINCA – AZE. MIX market. http://www.mixmarket.org/mfi/finca-aze/data

[4] responsAbility Global Microfinance Fund. Monthly report August 2009. http://www.credit-suisse.com/ch/privatkunden/privatebanking/en/doc/monatsreport_2009_08_en.pdf

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