MICROCAPITAL BRIEF: Incofin Lends $6m to Microfinance Institutions Vision Banco of Paraguay, Lazika Capital of Georgia, Credit Mongol of Mongolia, Forus Bank of Russia

Belgian company Incofin Investment Management (Incofin IM) has disbursed loans through microfinance investment funds it manages to four microfinance institutions (MFIs): USD 3 million to Vision Banco of Paraguay, USD 1 million to Lazika Capital of Georgia, USD 1 million to Credit Mongol LLC of Mongolia and USD 1 million to Forus Bank of Russia [1, 2, 3, 4]. The loans to Vision Banco and Forus Bank were disbursed through VDK MFI Loan Portfolio, while the loan to Lazika Capital was made available through the Impulse Fund [1, 2, 4]. The loan to Credit Mongol was disbursed in two tranches: USD 500,000 from Incofin CVSO and USD 500,000 from Impulse [3].

Founded in 1992, Vision Banco aims to contribute to economic development, job creation and poverty alleviation. As of September 2011, Vision Banco reported USD 652 million in total assets, a gross loan portfolio of USD 457 million, return on assets (ROA) of 2.02 percent and return on equity (ROE) of 25.2 percent.

Oxfam GB, a British nonprofit advocating for social development, founded Lazika Capital in 2000, with the program achieving operational independence in 2003. As of December 2010, Lazika Capital reported total assets of USD 13.9 million, a gross loan portfolio of USD 7.74 million, ROA of 6.58 percent and ROE of 23.6 percent.

Credit Mongol LLC was established as a limited liability company in 2000 as part of the European Union Tacis Programme, which seeks to help countries in Eastern Europe and Central Asia transition into market economies. Credit Mongol provides microloans to small and medium-sized enterprises and currently serves six regions in Mongolia. As of June 2011, Credit Mongol reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 10.7 million and a gross loan portfolio of USD 8.85 million. As of December 2010, it reported ROA of 7.08 percent and ROE of 26.7 percent.

Forus Bank was founded in 2005 by the Fora Fund, a Russian nonprofit microfinance organization. Forus Bank offers a range of financial services for micro- and small businesses, covering 11,000 customers through a 42-branch network. As of December 31, 2010, Forus Bank reported to MIX total assets of USD 47.9 million, a gross loan portfolio of USD 40.6 million, ROA of 0.98 percent, ROE of 14.7 percent and approximately 9,600 active borrowers.

By Kristha Abores, Research Associate

About Incofin Investment Management (Incofin IM):
Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.

About Incofin CVSO:
Incofin CVSO is an investment fund that makes equity and debt investment in small and medium-sized microfinance institutions (MFIs). The fund is managed by Incofin Investment Management and is incorporated in Belgium. As of October 31, 2011, Incofin CVSO has outstanding investments of EUR 31.1 million (USD 43 million).

About Incofin VDK MFI Loan Portfolio:
The Incofin VDK MFI Loan Portfolio was launched in 2007 by Volksdepositokas (VDK) spaarbank, a Belgian savings bank that is also one of Incofin’s shareholders. VDK spaarbank earmarked EUR 75 million (USD 110 million) for the fund and appointed Incofin to act as mediator for the facility. The fund invests in large microfinance institutions (MFIs) that are deemed “high-quality.” As of October 31, 2011, the VDK MFI Loan Portfolio has outstanding investments of EUR 59 million (USD 81.8 million).

About Incofin Impulse Microfinance Investment Fund:
The Incofin Impulse Microfinance Investment Fund was launched in 2004 by Incofin and other Belgian financial groups: KBC Bank Volksvermogen, a holding group; Boerenbond, an association of agricultural entrepreneurs; and Volksdepositokas (VDK) Spaarbank, a savings bank. The fund invests in microfinance institutions (MFIs) through loans and debt securities. The fund is managed by Incofin Investment Mangement, which specializes in microfinance investment. As of October 31, 2011, Incofin Impulse Microfinance Investment Fund has outstanding investments of EUR 42.2 million (USD 58.5 million).

About Vision Banco:
Founded in 1992, Vision Banco is a microfinance institution (MFI) based in Asunción, Paraguay. It aims to contribute to economic development, job creation and poverty alleviation. As of September 2011, Vision Banco reported USD 652 million in total assets, a gross loan portfolio of USD 457 million, return on assets (ROA) of 2.02 percent and return on equity (ROE) of 25.2 percent.

About Lazika Capital:
Oxfam GB, a British nonprofit advocating for social development, founded Lazika Capital in 2000, with the program achieving operational independence in 2003. Lazika Capital is headquartered in Zugdidi, Georgia. As of December 2010, Lazika Capital reported total assets of USD 13.9 million, a gross loan portfolio of USD 7.74 million, return on assets of 6.58 percent and return on equity of 23.6 percent.

About Credit Mongol LLC:
Credit Mongol LLC is a non-banking microfinance institution (MFI) that was established in Mongolia as a limited liability company in 2000 as part of the European Union Tacis Programme, which seeks to help countries in Eastern Europe and Central Asia transition into market economies. Credit Mongol aims to provide microloans to small and medium-sized enterprises and currently serves six regions in Mongolia. As of June 2011, Credit Mongol reported to US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 10.7 million and a gross loan portfolio of USD 8.85 million. As of December 2010, it reported a return on assets of 7.08 percent and a return on equity of 26.7 percent.

About Forus Bank:
Forus Bank is a banking microfinance institution (MFI) that was founded in 2005 in Nizhniy Novgorod, Russia, by the Fora Fund, a local nonprofit microfinance organization. Forus Bank offers a range of financial services for micro- and small businesses, covering 11,000 customers through a 42-branch network. As of December 31, 2010, Forus Bank reported to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 47.9 million, a gross loan portfolio of USD 40.6 million, return on assets (ROA) of 0.98 percent, return on equity (ROE) of 14.7 percent and approximately 9,600 active borrowers.

Comments

Popular posts from this blog