MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Lends $5m to Ghabbour Auto’s Tasaheel Microfinance of Egypt

Germany-based Invest in Visions (IIV) recently announced that it loaned USD 5 million in June 2018 to Tasaheel Microfinance, which is controlled by Egypt-based vehicle manufacturer Ghabbour (GB) Auto, formerly known as Ghabbour Brothers. IIV disbursed the loan from its microfinance investment vehicle, IIV Mikrofinanzfonds, a fund that lends to microfinance institutions (MFIs) operating in developing countries. Including this loan, IIV Mikrofinanzfonds loaned USD 17 million and EUR 2.8 million (USD 3.2 million) during the month to undisclosed MFIs in Armenia, Bolivia, Bosnia and Herzegovina, Ecuador, Egypt, El Salvador, Guatemala, Kazakhstan, and Kyrgyzstan.

Established in 2005, Tasaheel aims to provide financing to “marginalized economic actors” in Egypt. In particular, the MFI specializes in loans to women and women-run small and medium-sized enterprises (SMEs). In 2015, GB Auto’s finance arm, GB Capital, acquired 90 percent of Tasaheel’s shares for an undisclosed amount, leaving 10 percent of Tasaheel’s equity owned by Egypt-based Environmental Quality International. As of 2018, the MFI has a gross loan portfolio of USD 61 million outstanding to 271,000 customers served through 102 branches. Tasaheel does not accept deposits.

Established in 1960, GB Auto is involved in the distribution and manufacturing of cars and construction vehicles as well as providing financial services. For the year ending 2017, GB Auto and its subsidiaries reported annual revenue of EGP 18 billion (USD 992 million) and a pretax loss of EGP 752 million (USD 42 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 June 2018, it has a volume of EUR 576 million (USD 671 million). Since inception, IIV Mikrofinanzfonds has produced annualized returns averaging around 2.4 percent, depending on share class. In addition to microfinance, IIV offers services in sectors such as “sustainable” agriculture and social enterprises.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

IIV Fact sheet for June 2018
https://www.investinvisions.com/files/6_juni_iiv_mikrofinanzfonds_factsheet_englisch_6.pdf

Tasaheel background
http://www.ghabbourauto.com/GPCapital/Tasaheel.aspx

GB Auto press release, Tasaheel subsidiary launch
http://resources.ghabbourauto.com/GB-PR-Tasaheel-Launch-EN.PDF

GB Auto background
http://www.ghabbourauto.com/About.aspx

GB annual report
http://resources.ghabbourauto.com/gb-ar17-screenres-.pdf

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

MicroCapital Brief; June 11, 2018; Invest in Visions’ IIV Mikrofinanzfonds Lends $3m to Microfinance Institution Vision Banco Paraguay
https://www.microcapital.org/microcapital-brief-invest-in-visions-iiv-mikrofinanzfonds-lends-3m-to-microfinance-institution-vision-banco-paraguay/

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