MICROCAPITAL BRIEF: Invest in Visions’ IIV Mikrofinanzfonds Lends $6.5m to KMF for Microfinance in Kazakhstan

Germany-based Invest in Visions, (IIV) recently reported that in April it disbursed a loan of USD 6.46 million to KazMicroFinance (KMF), a microfinance institution (MFI) in Kazakhstan, from its microfinance investment vehicle IIV Mikrofinanzfonds. Also during April, IIV lent a total of USD 13 million to unidentified MFIs in Ecuador, Kyrgyzstan and Tajikistan via the same fund.

KMF was founded in 2006 as a for-profit entity by the nonprofit Kazakhstan Loan Fund, which was launched in 1997. As of 2018, KMF has a loan portfolio of USD 291 million outstanding to 221,000 clients, who are served by 1,700 staff members. For the quarter ending March 2018, KMF reports pre-tax profit KZT 2.9 billion (USD 8.8 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 April 2018, it has a volume of EUR 552 million (USD 654 million). Since inception, IIV Mikrofinanzfonds has produced annualized returns averaging around 2.5 percent, depending on share class. In addition to microfinance, IIV offers impact investing services in areas such as “sustainable” agriculture and social enterprises.

Sources and Additional Resources

KMF financials
https://www.kmf.kz/en/financial-reports/

IIV fact sheet
https://www.investinvisions.com/files/4_april_iiv_mikrofinanzfonds_factsheet_englisch_4_1.pdf

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