MICROCAPITAL STORY: Rural Impulse Fund of Belgium's Incofin Invests in Asomi, an Indian MFI

Incofin, a Belgian private social investment company that invests in MFIs, has signed an agreement with Asomi, an MFI operating in Assam, India. Incofin’s Rural Impulse Fund, which makes debt and equity investments in rural MFIs, acquired 25% of the capital of Asomi for an undisclosed amount. The investment represents Incofin’s first entry into India.

MicroCapital reported on Incofin’s launch of the Rural Impulse Fund in August 2007. At December 31, 2008, the fund had USD 31.5 million in invested assets. The fund aims to increase the supply of rural microfinance by extending commercial funding and strengthening the financial structure of MFIs that have successfully provided financial services to the rural poor and proved themselves to be financially sustainable. MFIs are selected on the basis of a methodology that measures the presence of the MFIs’ points of sales in rural areas. As of December 31, 2008, the largest geographic concentrations in the fund were in Bosnia and Herzegovina, Kyrgyzstan, Georgia, and Bolivia. The fund is made up of 81 percent debt, 11 percent equity, and eight percent quasi equity investments. Its primary investors include the Belgian Investment Company for Developing Countries (BIO), the European Investment Bank (EIB), the Netherlands Development Finance Company (FMO), the International Finance Corporation (IFC), and a group of private investors (KBC Private Equity, Incofin, MRBB, Volksvermogen, CERA, and BRS).

Established in 2001, Asomi fits the Rural Impulse Fund’s profile. Asomi has grown from less than 4,000 borrowers in 2005 to over 30,000 reached through 40 branches today. When Asomi reported to MIX Market in March 2008, the company had generated a 3.97 percent return on assets and a 109.4 percent return on equity.

Incofin was founded in 1992 and is currently a co-operative company (with limited liability) with social objectives. Currently Incofin supports 64 MFIs in 27 countries and manages USD 160.7 million across all of its funds.

By Iyanna Holmes, Research Assistant

MICROCAPITAL STORY: August 15, 2007, Incofin Announces Creation of Rural Impulse Fund, an Investment Fund to Target Rural Microfinance; BIO, EIB, IFC, FMO Invest

MIX Market Profile: Asomi; Incofin; Rural Impulse Fund

Symbiotics: Incofin Has Realized its First Equity Participation in India in Asomi, the Leading MFI in the State of Assam (North-Eastern India)