responsAbility, a Swiss-based microfinance investment vehicle (MIV) manager, recently reported to MicroCapital that it has executed debt investments totaling USD 2.5 million in two microfinance institutions (MFIs) in Georgia. Joint Stock Company (JSC) Bank Constanta, a microfinance bank in Georgia, will receive USD 375,000 from responsAbility Mikrofinanz-Fonds and USD 1.25 million from the responsAbility Global Microfinance Fund. Limited Liability Company (LLC) Microfiance Organization (MFO) Credo, a non-bank financial institution, will receive USD 400,000 from responsAbility Mikrofinanz-Fonds and USD 600,000 from responsAbility Global Microfinance Fund. 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, Constanta had total assets of USD 42.5 million, a gross loan portfolio of USD 34.3 million and 11,353 active borrowers as of 2008. In 2009 it reported 7.71 percent return on equity (ROE) and 1.3 percent return on assets (ROA). As of 2008, Credo had total assets of USD 29.9 million, a gross loan portfolio of USD 26 million and 22,892 active borrowers. In 2009 it reported 21.6 percent ROE and 3.11 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. As of this year the responsAbility Mikrofinanz-Fond reports total assets of USD 103 million, USD 74 million of which are allocated to 130 active microfinance investments.
About Joint Stock Company (JSC) Bank Constanta:
Joint Stock Company (JSC) Bank Constanta has been working in Georgia since 1997. It provides microfinance services to micro- and small businesses. In December 2007, Constanta started its operations as a joint stock company. On July 3, 2008, Constanta received a license from the National Bank of Georgia (NBG) to conduct commercial banking operations under the new name JSC Bank Constanta. According to the MIX Market, the microfinance information clearinghouse, Constanta had total assets of USD 42.5 million, a gross loan portfolio of USD 34.3 million and 11,353 active borrowers as of 2008. In 2009 it reported 7.71 percent return on equity (ROE) and 1.3 percent return on assets (ROA).
About Limited Liability Company (LLC) Microfinance Organization (MFO) Credo:
In 1997, the Georgia’s Entrepreneurs’ Fund (GEF) was founded to provide sustainable financial services to Georgian micro- and small businesses by Vision Fund International, a California-based microfinance corporation managing a USD 70 million portfolio invested in 45 microfinance institutions (MFIs). GEF, upon local registration in Georgia, continued operations under the name VisionFund CREDO Foundation, also known as CREDO. Vision Fund is owned by US-based, private Christian relief, development, and advocacy organization, World Vision International.
About responsAbility Global Microfinance:
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 Luxembourg Funding Labelling 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 Luxembourg Funding Labelling 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: JSC Bank Constanta:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=jsc+bank+constanta
MicroCapital Universe: LLC MFO Credo:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LLC+MFO+Credo
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: World Vision International:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=World+Vision
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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