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MICROCAPITAL BRIEF: Triodos Loans $9.6m to Microfinance Institution Grameen Koota of India, Portfolio Company of Creation Investments

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MICROCAPITAL BRIEF: Triodos Loans $9.6m to Microfinance Institutions Grameen Koota of India, Koperasi Mitra Dhuafa (Komida) of Indonesia

» Posted by  in Category: Deals,Investment Funds,South Asia, East Asia and Pacific at 1:30 am

Triodos Investment Management, a subsidiary of Dutch Triodos Bank, recently disbursed loans totaling the equivalent of USD 9.6 million to Grameen Financial Services Private Limited (Grameen Koota), a non-banking financial company (NBFC) in India, and Koperasi Mitra Dhuafa (Komida), an Indonesian microfinance institution (MFI) [1]. Grameen Koota will be receiving EUR 6 million (USD 8.2 million) through the issue of secured, redeemable, non-convertible debentures (NCDs) to two microfinance investment funds managed by Triodos: Triodos Fair Share Fund, which provides retail investors in the Netherlands the opportunity to invest in MFIs in developing countries; and Triodos Microfinance Fund, which gives institutional investors in Belgium, Denmark, Luxembourg, the Netherlands, and the UK opportunity to provide loans and equity to MFIs in Latin America, Africa, Asia and Eastern Europe [2].

Komida will be receiving EUR 1 million (USD 1.4 million) from Hivos-Triodos Fund, a collaboration between the Netherlands-based Hivos Foundation and Triodos Bank intended to promote entrepreneurship and microfinance in developing countries.

As of 2012, Grameen Koota reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 99.5 million, a gross loan portfolio of USD 96.5 million, 346,500 active borrowers, return on assets (ROA) of 2.19 percent and return on equity (ROE) of 12.6 percent. The institution does not accept deposits.

As of September 2013, Komida had an outstanding loan portfolio of EUR 7.7 million (USD 10.5 million), 127,800 borrowers and 59 branches. Komida lends exclusively to women [3].

By Nisha Koul, Research Associate

About Grameen Financial Services Private Limited (Grameen Koota): Grameen Financial Services Private Limited, popularly known as Grameen Koota, was founded in India in 1999 as a project of nongovernmental organization T Muniswamappa Trust and has since become an independent non-banking finance company (NBFC). It operates in the Indian states of Maharashtra, Karnataka and Tamil Nadu and offers products such as microloans, vocational training loans, workshops and access to educational centers. As of 2012, Grameen Koota reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 99.5 million, a gross loan portfolio of USD 96.5 million, 346,500 active borrowers, return on assets (ROA) of 2.19 percent and return on equity (ROE) of 12.6 percent. The institution does not accept deposits.

About Triodos Investment Management: Triodos Investment Management manages funds that invest in financial sector development in developing countries, renewable energy and venture capital. Among these are four microfinance investment funds: the Hivos-Triodos Fund, the Triodos-Doen Foundation, the Triodos Fair Share Fund and Triodos Microfinance Fund. Triodos also co-manages WWB Isis Fund, an equity fund launched by Women’s World Banking (WWB). As of October 31, 2013, these five funds had total assets of USD 696 million and collectively provide finance to 106 microfinance institutions and banks in 44 countries [4]. Triodos Investment Management is a subsidiary of Triodos Bank, a Dutch for-profit financial institution with assets of EUR 5.3 billion (USD 7.2 billion) as of 2012.

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