responsAbility Social Investments AG, an investment company based in Switzerland, recently reported to MicroCapital that it invested the equivalent of USD 13 million in two microfinance institutions (MFIs) in South America. The responsAbility Microfinance Leaders Fund (rAMLF) and Mikrofinanz-Fonds, microfinance investment vehicles (MIVs) managed by responsAbility, invested USD 5 million each in Banco Continental, a full-service, commercial bank established in Paraguay in 1980. In 2009 Banco Continental reported a gross loan portfolio equivalent to USD 1 billion. In 2007, the World Bank, a multilateral, development, financial institution, became a minority shareholder in Banco Continental with an equity investment of USD 20 million.
In Peru, rAMLF and the responsAbility Global Microfinance Fund (rAGMF), another MIV managed by responsAbility, made local currency loans equivalent to USD 2 million and USD 1 million respectively to Financiera Confianza, a microfinance institution established in Peru in 1992. As of June 2010, Financiera Confianza reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, USD 147 million in assets, a gross loan portfolio of USD 114 million, 73,000 active borrowers, return on assets of 0.38 percent and return on equity of 2.26 percent [1].
By Julie Moksim, Research Associate
About responsAbility Social Investments AG: Founded in 2003, responsAbility Social Investments AG of Switzerland is an investment company whose products aim to enable investors to earn a financial return while allowing people in developing countries and emerging markets to access markets, information and other services in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. According to calculations based on data from the Microfinance Information Exchange (MIX) from 2009 and 2010, responsAbility manages approximately USD 800 million in total assets. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.
About responsAbility Microfinance Leaders Fund (rAMLF): The responsAbility Microfinance Leaders Fund (rAMLF) invests in large microfinance institutions (MFIs) through debt securities and equity investments. The Luxembourg Fund Labeling Agency (LuxFLAG), an independent organization that certifies that investment vehicles actually invest in the microfinance sector, renewed rAMLF’s label as of April 2010. rAMLF reported 129 active investments in microfinance in 2010 and total fund assets of USD 160 million.
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 organization that investigates whether investment vehicles actually support the microfinance sector. rAGMF reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it had USD 474 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 reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, that it held USD 103 million in assets as of 2010. The Luxembourg Fund Labeling Agency (LuxFLAG), an organization that investigates whether investment vehicles actually support the microfinance sector, renewed its certification of Mikrofinanz-Fonds as of April 2010.
About Banco Continental: Banco Continental was established in Paraguay in 1980. Banco Continental offers services such as deposits, investment financing and financial consulting with a stated commitment to social responsibility. In 2007 Banco Continental began a relationship with the World Bank, a multilateral, development finance organization, which led to the opening of a line of credit for foreign trade operations. The World Bank became a shareholder of Banco Continental with an equity investment of USD 20 million through the International Finance Corporation (IFC), the private investment arm of the World Bank. In 2009 Banco Continental reported a gross loan portfolio equivalent to USD 1 billion.
About Financiera Confianza: Financiera Confianza is a microfinance institution that was founded in Peru in 1992 as the Entrepreneurial Development Program by the Inter-American Development Bank (IDB) of the US and the nongovernmental organization (NGO) Servicios Educativos Promocion y Apoyo Rural (SEPAR) of Peru. In 1998, having grown into a financial institution, the organization changed its name to Epdyme Confianza. In 2009, it again changed its name to Financiera Confianza. It now offers microloans to rural and urban enterprises. As of June 2010, Financiera Confianza reported to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, USD 147 million in assets, a gross loan portfolio of USD 114 million, 73,000 active borrowers, return on assets of 0.38 percent and return on equity of 2.26 percent.
[1] Data submitted by responsAbility Social Investments to MicroCapital January 2011
MicroCapital’s Microfinance Universe Profile: responsAbility Social Investments AG
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=responsAbility
MicroCapital’s Microfinance Universe Profile: responsAbility Microfinance Leaders Fund (rAMLF)
MicroCapital’s Microfinance Universe Profile: responsAbility Global Microfinance Fund (rAGMF)
MicroCapital’s Microfinance Universe Profile: Mikrofinanz-Fonds
MicroCapital’s Microfinance Universe Profile: Banco Continental
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Continental
MicroCapital’s Microfinance Universe Profile: Financiera Confianza
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Confianza
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