MICROCAPITAL BRIEF: responsAbility Global Microfinance Fund and responsAbility Mikrofinanz-Fonds Commit $3.3m to Microfinance Institutions Agricultural Cooperative Bank of Armenia (ACBA) Credit Agricole Bank and Nor Horizon Universal Credit Organization (UCO) Limited Liability Company (LLC) of Armenia

responsAbility, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has executed debt investments totaling USD 3.3 million in two microfinance institutions (MFIs) in Armenia. Agricultural Cooperative Bank of Armenia (ACBA) Credit Agricole Bank, a microfinance bank that is partially held by Credit Agricole of France, will receive USD 1 million from responsAbility Mikrofinanz-Fonds and USD 2 million from the responsAbility Global Microfinance Fund. Nor Horizon United Credit Organization (UCO) Limited Liability Company (LLC), a regulated MFI, will receive USD 300,000 from responsAbility Global Microfinance. The investment funds are two of four funds operated by responsAbility, the others being responsAbility Base of the Pyramid and responsAbility Microfinance Leaders.

According to the MIX Market, the microfinance information clearinghouse, ACBA had total assets of USD 402.6 million, a gross loan portfolio of USD 252.6 million and 96,106 active borrowers as of 2008. In 2009 it reported a 13.09 percent return on equity (ROE) and 2.83 percent return on assets (ROA). As of 2008, Nor Horizon had total assets of USD 2.9 million, a gross loan portfolio of USD 2.5 million and 2,216 active borrowers. In 2009 it reported a -8.12 percent ROE and -2.73 percent ROA.

As reported to the MIX Market this year, the responsAbility Global Microfinance Fund has USD 475 million in total assets, USD 335 million of which are allocated to 202 active microfinance investments. Also as of this year the responsAbility Mikrofinanz-Fonds reports total assets of USD 103 million, USD 74 million of which are allocated microfinance funds, spread throughout 130 active microfinance investments.

About ACBA Credit Agricole Bank:

Agricultural Cooperative Bank Armenia (ACBA) was founded by Agricultural Cooperative Regional Unions of three Armenian provinces, Shirak, Armavir and Ararat; and obtained a full banking license on March 29, 1996. ACBA was initially created to finance individual farmers and small and medium-sized agricultural enterprises. In the next few years the bank began to finance non-agricultural programs in the agricultural sector, and since 1999 ACBA has extended loans for small and medium-size business development. In 2006 Credit Agricole SA, France, made an investment in ACBA’s capital and the Bank was renamed and reorganized into ACBA-Credit Agricole Bank CJSC. At present, Credit Agricole SA is the biggest shareholder in the Bank with 28% of shares. According to the MIX Market, the microfinance information clearinghouse, ACBA had total assets of USD 402.6 million, a gross loan portfolio of USD 252.6 million and 96,106 active borrowers as of 2008. In 2009 it reported 13.09 percent return on equity (ROE) and 2.83 percent return on assets (ROA).

About Nor Horizon UCO LLC:

Nor Horizon Universal Credit Organization (UCO) Limited Liability Company (LLC) is a for-profit, regulated, non-deposit-taking entity, which was established in 2006 in order to carry out microlending activities in the rural regions of Armenia. The clients of Nor Horizon were micro-scale entrepreneurs involved in retail trading, small-scale manufacturing, processing, services, land cultivation and animal breeding. According to the MIX Market, the microfinance information clearinghouse, Nor Horizon had total assets of USD 2.9 million, a gross loan portfolio of USD 2.5 million and 2,216 active borrowers as of 2008. In 2009 it reported -8.12 percent ROE and -2.73 percent ROA.

About responsAbility Global Microfinance Fund:

The responsAbility Global Microfinance Fund (rAGMF) invests in microfinance institutions (MFIs) and microfinance investment vehicles (MIVs), mostly through short- to medium-term debt securities. rAGMF also invests up to 10 percent of its assets in the equity of MFIs. As of April 2010, it has been certified by the Luxemburg Funding Labeling Agency (LuxFLAG), an independent nonprofit that certifies MIVs based on their direct or indirect investment in the microfinance sector.

About responsAbility Mikrofinanz-Fonds:

The responsAbility Mikrofinanz-Fonds invests in microfinance institutions (MFIs) through debt securities and equity investments. The fund was created in 2007 by responsAbility of Luxemburg, and is financed by Bank im Bistum Essen, a German cooperative financial institution, and Stadtsparkasse D’sseldorf, a German bank. As of April 2010, it has been certified by the Luxemburg Funding Labeling Agency (LuxFLAG), an independent nonprofit, which certifies MIVs based on their direct or indirect investment in the microfinance sector.

By Matthew Fox, Research Associate

Sources and Additional Resources:

E-mail correspondence with MicroCapital June 10, 2010.

MicroCapital Universe: ACBA Credit Agricole Bank:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACBA

MicroCapital Universe: Nor Horizon UCO LLC:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nor+Horizon

MicroCapital Universe: responsAbility Global Microfinance:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Global+Microfinance+Fund+(rAGMF)

MicroCapital Universe: responsAbility Mikrofinanz-Fond:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Mikrofinanz-Fonds

MicroCapital Universe: Luxemburg Fund Labeling Agency:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG

Browse the MicroCapital Universe and add your entry to the wiki at:https://www.microcapital.org/microfinanceuniverse/

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