Triple Jump news - Wednesday, January 25, 2012
Stake in Azercredit in Azerbaijan
Triple Jump’s ASN-Novib Microkredietfonds and Belgium Incofin IM’s Rural Impulse Fund II take an equity stake in Azercredit. This Azerbaijani microfinance institution (MFI) with strong rural focus was founded and solely owned by World Vision/VisionFund. Incofin IM and Triple Jump will be actively involved in the institution’s future development by taking up a seat in Azercredit’s board of directors.
The investment in Azercredit by international investors not only shows its excellent relationship with the international community, but also illustrates the soundness of its operations. The three shareholders of Azercredit will support the growth plans of the institution and guide it in improving its financial and social performance, without losing sight of its main target group of rural entrepreneurs.
Founded in 1996, Azercredit is one of the leading MFI’s of Azerbaijan. It serves more than 43,000 clients, many of who live in remote rural areas that are being targeted by few other financial institutions. In addition, more than half of the USD 38 million portfolio goes to agricultural activities. With an average loan size of USD 860, Azercredit is serving a niche of low- income entrepreneurs. Both the strong rural portfolio and the small average loan size underline the deep outreach of the institution.
The Azercredit branch network consists of 21 offices that cover the economically most active regions of the country, and is planned to expand towards more rural areas. The product offering of Azercredit comprises a variety of group and individual products as well as loans adapted to the agribusiness. The existing products and services are well-designed and accessible and subject to regular revision in view of the clients’ needs. Thanks to this customer orientation, Azercredit built strong client relationships and can count on high customer fidelity. The MFI’s strong procedures and internal controls result in an excellent portfolio.
Azercredit is a non-bank credit organization (NBCO). The Central Bank of Azerbaijan acts as regulator and supervisor in the non-bank sector. As such it sets the standards with regard to transparency, client relations and confidentiality. Its Central Credit Registry Service centralizes all information on outstanding loans and requires NBCO’s to report. Hence over-indebtedness in the country is being reduced while minimizing the potential risk for investors.
VisionFund Internbational has recently announced a new strategy to focus its future work increasingly on Africa, Asia and Latin America, so as to achieve an even greater impact on the lives of children trapped in poverty. As part of this strategy, its MFIs in Eastern Europe will begin to take on a more independent existence from VisionFund and the investment in Azercredit by Incofin IM and Triple Jump fits with this approach. Nonetheless, VisionFund remains a significant investor in Azercredit and will continue to support its future development as a highly successful MFI in both financial and social performance.
About Rural Impulse Fund II & Incofin IM
Rural Impulse Fund II is a EUR 120 million (USD 163 million) fund that was launched in 2010. The fund aims at contributing to the alleviation of poverty in rural areas by investing in MFIs that have a strong presence in these rural regions. The fund is advised by Incofin Investment Management, a manager of microfinance investment funds striving to achieve balanced social and financial returns. Incofin IM has 6 funds under management totaling EUR 300 million (USD 445 million) and offices in Belgium, Colombia and India. More information is available on
About VisionFund
VisionFund is the microfinance arm of World Vision and is dedicated to improving the lives of children, families and their communities by offering small loans and other financial services to those who want to build their way out of poverty.
VisionFund has a loan portfolio of over 0 million and currently help more than 688,000 small businesses. We have created or sustained over 1.5 million jobs in 37 countries worldwide.
About World Vision
World Vision is a Christian humanitarian organization dedicated to working with children, families, and their communities worldwide to reach their full potential by tackling the causes of poverty and injustice. We serve the world's poor— regardless of religion, race, ethnicity or gender.
