MICROCAPITAL BRIEF: Invest In Visions’ IIV Mikrofinanzfonds Lends $3m to Armeconom Bank to Support Microfinance in Armenia

Germany-based Invest in Visions (IIV) recently announced that it has loaned USD 3 million to Armeconom Bank of Armenia from IIV Mikrofinanzfonds, a microfinance investment vehicle that lends to financial institutions in developing countries. Launched in 1991, Armeconom offers loans, credit lines, deposit services, payment cards, transfers and other services to individuals and businesses. It accepts deposits in four currencies, with rates ranging from 0.2 percent to 10 percent per year. Its lending products include offerings designed for women-owned businesses, agriculture, education, solar products, housing, cars and consumer purchases. Its average loan size is USD 2,860.

As of 2019, Armeconom has 52 branches and 82,000 clients. As of 2017, it held total assets of AMD 190 billion (USD 384 million), a loan portfolio of AMD 104 billion (USD 210 million) and deposits of AMD 92 billion (USD 184 million). Although complete newer data is not available, the organization’s loan portfolio has since grown to USD 270 million.

IIV was founded in 2006, and it launched IIV Mikrofinanzfonds in 2011. The fund, which focuses on investing in small and medium-sized MFIs in rural areas, accepts investments as small as EUR 100 (USD 118). As of February 2019, it has a volume of EUR 666 million (USD 753 million). Since 2013, IIV Mikrofinanzfonds, which has two share classes, produced annualized returns ranging from 1.06 percent to 4.4 percent. IIV Mikrofinanzfonds’ investments enable loans to 262,000 microentrepreneurs, comprising 59 percent women, at an average loan size of USD 2,160. In addition to microfinance, IIV offers services in sectors such as “sustainable” agriculture and social enterprises.

By Shuyang Sun, Research associate

Sources and Additional Resources

IIV report, February 2019
https://www.investinvisions.com/files/1902_monthly_report_february_2019_1.pdf

Armeconom Bank home page
http://www.aeb.am/

Armeconom Bank 2018 Annual Report
http://aeb.am/media/2018/07/1812.pdf

MICROCAPITAL BRIEF: Invest In Visions’ IIV Mikrofinanzfonds Lends $9m to Microfinance Institution Letshego Kenya
https://www.microcapital.org/microcapital-brief-invest-in-visions-iiv-mikrofinanzfonds-lends-9m-to-microfinance-institution-letshego-kenya/

IIV background
https://www.investinvisions.com/en/about-us.html

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