MICROCAPITAL STORY: Dexia Microcredit Fund of Luxembourg Lends $2m to Asian Microfinance Institutions Bai Tushum Financial Foundation (BTFF), Finance for Development LLC (FinDev) and Angkor Microfinance Kampuchea (AMK)

CGAP (Consultative Group to Assist the Poor) reported in its recent list of transactions that Dexia Microcredit Fund, a Luxembourg investment fund, lent USD 1 million to Bai Tushum Financial Foundation (BTFF), USD 500,000 to Finance for Development LLC (FinDev) and USD 500,000 to Angkor Microfinance Kampuchea (AMK), all of which are Asian microfinance institutions (MFIs).

Dexia Microcredit Fund is a Luxembourg-based commercial investment fund launched in 1998 to refinance MFIs. Dexia Microcredit was launched by Dexia Banque Internationale, a retail bank formed in 1996 by the merger of Crédit Communal de Belgique and Crédit Local de France. The fund was created as a socially responsible investment opportunity for investors while providing them with an attractive investment return. The 2008 financial data provided by the Microfinance Information Exchange (MIX) shows that Dexia Microcredit has total assets of USD 298.5 million with USD 284.9 million allocated towards microfinance investments. Dexia Microcredit fund is currently active in 19 nations and finances 30 MFIs.

Founded in 2000, BTFF is an MFI based in Kyrgyzstan and created by ACDI/VOCA, an economic development organization specializing in agriculture business systems, and Swiss CARITAS, a Catholic relief and development organization. BTFF was formed to allow micro, small and medium enterprises access to financial services and products after Kyrgyzstan’s independence. The most recent financial data provided by the MIX shows BTFF had total assets of USD 34.7 million at the end of 2007. The MFI’s return on assets was 5.68 percent, and its return on equity was 23.31 percent. BTFF had 10,695 active borrowers at the end of 2007.

FinDev, an Azerbaijani MFI, was founded in 1997 by Oxfam GB, the United Kingdom subsidiary of Oxfam International, a confederation of non-governmental organizations (NGOs) founded in 1995 with the purpose of reducing poverty. FinDev was started after a survey conducted by Oxfam GB revealed a lack of financial resources for individuals disadvantaged by war and economic decline. According to the 2007 financial data provided by the MIX, FinDev had total assets of USD 4.2 million and a gross loan portfolio of USD 4.0 million. Its return on assets was 15.68 percent, and its return on equity was 45.24 percent. At the end of 2007, FinDev had 4,725 active borrowers.

AMK is a Cambodian MFI that originated from the savings and credit development work done by Concern Worldwide, an NGO dedicated to humanitarian efforts and poverty alleviation. The savings and credit program from which AMK is created was founded in 1999, but AMK did not become an independent organization until 2003. The most recent financial data from the MIX shows AMK had total assets USD 12.3 million at the end of 2007, with a gross loan portfolio of USD 10.3 million. The MFI had a return on equity of 24.71 percent and a return on assets of 8.64 percent. As of 2007, AMK had 120,111 active borrowers, with 84.5 percent of these borrowers being women.

Additional Resources:

ACDI/VOCA: Home, About

Angkor Microfinance Kampuchea: Home, History

Bai Tushum: Home, History

Concern Worldwide: Home, About

Dexia: Dexia Microcredit Fund, Home, About

MIX Market: Profile for Dexia Microcredit Fund

MIX Market: Profile for FinDev

MIX Market: Profile for AMK

MIX Market: Profile for BTFF

Oxfam International: Home, Oxfam GB, About

Swiss Caritas: Home