Premier Credit Limited, a member of the Kenya-based Premier Group of microfinance institutions (MFIs), recently sold a package of microloan receivables for USD 720,000 to IIV Mikrofinanzfonds, a fund managed by Germany-based Invest in Visions (IIV). The MFI will use the cash to continue its support of micro- and small-scale entrepreneurs in Kenya. Other units of the Premier Group operate 22 branches in Uganda under the name Premier Credit Limited and 40 branches in Tanzania under the name Fanikiwa Microfinance.
Established in 2013, Premier Credit (Kenya) is headquartered in Nairobi. The MFI provides group and individual business loans with terms of 1 month to 2 years; loans to salaried employees with terms up to 5 years; and “partnership products,” through which the MFI works with retailers to finance clients’ purchases of durable goods, such as water tanks, solar lamps and biodigesters. As of 2020, the MFI has a gross loan portfolio of USD 35.5 million and serves 69,500 borrowers via 36 branches. The Premier Group MFIs do not accept deposits.
Launched in 2006, IIV offers “investments in sustainable agriculture, social enterprises and social impact lending.” The firm created IIV Mikrofinanzfonds in 2011 to invest in micro-, small and medium-sized enterprises via intermediaries in developing countries. Its “focus is on small and medium-sized MFIs, particularly in rural areas.” The minimum investment in the fund is EUR 100 (USD 109). During the first four months of 2020, the two share classes of IIV Mikrofinanzfonds generated losses of 2.7 percent to 2.9 percent. This follows two years of positive annual returns of 1.0 percent to 1.7 percent. With a volume of EUR 778 million (USD 874 million) as of April 2020, the fund supported 334,000 microborrowers, whose average loan size was USD 2,400. Of these microborrowers, 55 percent are women and 21 percent work in agriculture.
By Madigan Ruch, Research Associate
Sources and Additional Resources
IIV Mikrofinanzfonds monthly report
https://www.investinvisions.com/files/2004_factsheet_april_2020_englisch.pdf
Premier Credit (Kenya) homepage
https://www.premierkenya.co.ke/
Premier Credit (Uganda) homepage
https://www.premiercredit.co.ug/
Fanikiwa Microfinance (Tanzania) homepage
http://www.premiercredit.co.ug/premierTZ/
IIV homepage
https://www.investinvisions.com
Previous MicroCapital news on IIV Mikrofinanzfonds
https://www.microcapital.org/microcapital-brief-mfis-in-bosnia-and-herzegovina-georgia-india-panama-tajikistan-uzbekistan-refinance-38m-in-microloans-via-sales-to-iiv-mikrofinanzfonds/
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