In its Microfinance Capital Markets Update, CGAP (Consultative Group to Assist the Poor) reports that responsAbility Mikrofinanz-Fonds fund recently made investments totaling USD 2.7 million in four microfinance institutions (MFIs). In the Europe and Central Asia Region, Mikrofinanz-Fonds invested USD 300,000 in MicroInvest of Tajikistan and USD 1.5 million in AgroInvest of Serbia and Montenegro. In the Latin America and Caribbean Region, USD 500,000 was invested in Prestanic of Nicaragua and USD 400,000 in Peruvian MFI Fondesurco.
The Mikrofinanz-Fonds fund, incepted in 2007, is managed by responsAbility Social Investment Services Ltd., a Swiss investment firm that aims to connect social investors with MFIs in need of capital. The fund’s portfolio is financed by its shareholders, Bank im Bistum Essen, a German cooperative financial institution, and Stadtsparkasse Düsseldorf, a German bank. As of April 2008, Mikrofinanz-Fonds total net assets were equivalent to USD 51.5 million.
Mikrofinanz-Fonds was recently granted the LuxFLAG Microfinance Label as an approved microfinance investment vehicle. The Luxembourg Fund Labeling Agency (LuxFLAG) is a nonprofit association established in July 2006 that aims to reassure investors that organizations are investing in microfinance. MicroCapital reported on LuxFLAG here.
Microloan Fund (MLF) MicroInvest is a Tajikistan-based non-bank financial institution established in 2002 by ACDI/VOCA, an economic development organization specializing in agriculture business systems. According to MIX Market, MicroInvest had total assets of USD 5.9 million in December of 2007. With a focus on rural micro and small enterprises, MicroInvest has 10,435 active borrowers. Its MIX profile also reports a debt-equity ratio of 371.17 percent and a return on assets of 8.38 percent. In 2006, CGAP named MicroInvest a Merit Recipient for financial transparency in microfinance institutions. Also in 2006, MicroInvest received a rating of BBB by Microfinanza Rating.
AgroInvest is a non-bank financial institution that provides services to rural families in Serbia and Montenegro. It was established in July 1999 by World Vision International, a Christian humanitarian organization. With 33,194 borrowers as reported by MIX Market, AgroInvest operates in over 300 village associations governed by member-elected councils. MIX Market also reports AgroInvest’s total assets of USD 76.6 million, a debt-equity ratio of 248.52 percent and a return on assets of 5.29 percent. It received an A- from Planet Rating in March 2006 and was ranked 22nd in the Forbes Magazine’s list of Top 50 MFIs. MicroCapital reported on this ranking here.
Prestanic, a non-governmental organization in Nicaragua, was established in 1991 by the Council of Protestant Churches of Nicaragua (CEPAD). It became independent in 1999 and now operates throughout Nicaragua with 10 offices and 12,921 borrowers. As of December 2007, Prestanic’s total assets summed USD 18.8 million according to its MIX Market profile. Additionally, its debt-equity ratio was 339.21 percent and its return on assets was 7 percent. In March 2007, Prestanic received a rating of BBB+ by rating agency Microfinanza.
Founded in 1994, Fondo de Desarrollo Regional (Fondesurco) is a nonprofit organization that specializes in microfinance in southern Peru. According to the MIX Market, as of December 2006, Fondesurco had total assets of USD 2.2 million and 1,818 borrowers. Return on assets for the MFI was 5.13 percent and it had return on equity of 10.12 percent. Fondesurco received a rating of B from Planet Rating in February 2007.
By Sarah Knapp, Research Assistant
AgroInvest: MIX Market, Planet Rating
Consultative Group to Assist the Poor (CGAP): Microfinance Capital Markets Update, List of Microfinance Investment Vehicles Created in 2007 & 2006, List of Recent Transactions, Merit Recipients 2006
Council of Protestant Churches of Nicaragua
Fondesurco: MIX Market, Planet Rating
LuxFLAG: Microfinance Label, Microfinance Investment Vehicles
MicroInvest: Microfinanza, MIX Market
Prestanic: Microfinanza, MIX Market
responsAbility Social Investment Services Ltd.: Mikrofinanz-Fonds
“The World’s Top 50 Microfinance Institutions”, by Matthew Swibel, Forbes Magazine: December 2007.
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