MICROCAPITAL BRIEF: responsAbility Social Investments Invests $12.4m in Microfinance Institutions (MFIs) ProCredit Holding and Visionfund Cambodia

Three microfinance investment vehicles managed by the Swiss social investment company responsAbility (ResponsAbility Global Microfinance?Fund (rAGMF), ResponsAbility Microfinance Leaders Fund (rAMLF) and responsAbility Mikrofinanz-Fonds) loaned USD 12.4 million in total to microfinance institutions (MFIs) ProCredit Holding and Visionfund Cambodia in October.

ResponsAbility Mikrofinanz-Fonds and rAMGF loaned ProCredit Holding USD 3.13 million and USD 7.30 million; while rAMGF and rAMLF loaned USD 800,000 and USD 1.2 million to Visionfund Cambodia respectively. Further financial details of the loans are not disclosed.

ProCredit Holding – with 21 banks operating in developing countries – has total assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion) as of 2009. According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, VisionFund Cambodia has a gross loan portfolio of USD 21.3 million, total assets of USD 26.5 million and 98,777 active borrowers in the same year. The rAGMF has USD 474 million in fund assets while rAMLF and Mikrofinanz-Fonds have USD 160 million and 103 million under management respectively.

About ProCredit Holding:

ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle- income savers who have previously had limited access to formal financial services. As of 2009 it has total assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion).

About VisionFund Cambodia:

VisionFund is a Christian company that provides financial services to help the poor liberate themselves from poverty. The fund was formerly part of US-based nonprofit World Vision, but subsequently transitioned into a separate microfinance institution (MFI). According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, the MFI had a gross loan portfolio of USD 21.3 million, total assets of USD 26.5 million and 98,777 active borrowers as of 2009.

About responsAbility Global Microfinance Fund (rAGMF):

rAGMF is a microfinance vehicle (MIV) managed by responsAbility that 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. In April 2010, its annual label was renewed by the Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that investigates whether microfinance investment vehicles actually support the microfinance sector. rAGMF reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it has USD 474 million in fund assets as of 2010.

About responsAbility Microfinance Leaders Fund (rAMLF):

The responsAbility Microfinance Leaders Fund (rAMLF) is a microfinance investment vehicle, which mobilizes capital for microfinance institutions (MFIs). The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. Investments range from USD 50,000 to USD 1.5 million. LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed rAMFL’s label as of April 2010. rAMFL reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse that it has USD 160 million in fund assets as of 2010.

About Mikrofinanz-Fonds:

Mikrofinanz-Fonds is a microfinance investment vehicle (MIV) that was launched in 2007, is managed by responsAbility Social Investments AG of Switzerland and is funded by German financial institutions Bank im Bistum Essen and Stadtsparkasse Dusseldorf. It invests in microfinance institutions (MFIs) through debt securities and equity investments. Mikrofinanz-Fonds reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it holds USD 103 million in assets as of 2010. Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that investigates whether microfinance investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.

By Trevor Kwong, Research Assistant

Sources and Additional Resources:

[1] Source: responsAbility email correspondence with MicroCapital

[2] MicroCapital Universe: responsAbility Global Microfinance Fund:

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

[3] MicroCapital Universe: responsAbility Microfinance Leaders Fund (rAMLF):

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility+Microfinance+Leaders+Fund+(rAMLF)

[4] MicroCapital Universe: responsAbility Mikrofinanz-Fonds:

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

[5] MicroCapital Universe: ProCredit Holdings:

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding

[6] MicroCapital Universe: VisionFund Cambodia:

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=VisionFund+Cambodia

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