Case Study

Fund Assessment Study: Microfinance Subordinated Debt Fund - VG Microfinance-Invest Nr. 1

Evaluation of the benefits achieved by five MFIs and their clients

This study evaluates the fulfillment of the VG Microfinance-Invest Nr. 1 GmbH's (the Fund’s) objectives. The Fund was introduced by the Deutsch Bank’s Global Social Finance Group as a seven year subordinated debt fund that matured at the end of 2014. The evaluation of the Fund is based on retrospective analysis of the benefits achieved by five MFIs and their clients, both with a quantitative analysis of financial, operational, and social indicators and a qualitative analysis through case studies.

The study finds that the Fund has met its objectives by providing financing that has been an important support to the MFIs’ growth in client outreach, to their improved product offerings, and to their increased focus on the clients’ wellbeing and economic advancement. The study covers the following sections in detail:

  • Background of Deutsch Bank’s Global Social Finance Group and the Microfinance Invest Nr. 1;
  • Overview of the global microfinance sector with a focus on the challenge of indebtedness;
  • Portfolio overview of the Fund with a focus on loan distribution, geography, and currency used for loan disbursements;
  • Financial performance, operating performance, and social performance of the Fund;
  • Case studies of five MFIs: AccessBank, Asian Credit Fund, Banco Solidario, IMON, and Integral;
  • Concluding remarks.

About this Publication

By Cavazos, R. , Meslay, M.