Page 1

“Microfinance has an important social impact, which is also very quickly felt. Thousands of microentrepreneurs around the world experience a significant improvement of their living conditions. In this way they reap the fruits of our investments every day.�

Table of contents Interview with Frans Verheeke - Chairman of the Board of Directors of Incofin cvso ........................................... 6 Incofin cvso.......................................................................................................................................................................................................... 14 Investments by Incofin cvso....................................................................................................................................................................... 26 DIRECT INVESTMENTs IN MICROFINANCE INSTITUTIONS....................................................................................................................... 27 INVESTMENTs IN MICROFINANCING FUNDS................................................................................................................................................ 52 INVESTMENT IN INCOFIN INVESTMENT MANAGEMENT........................................................................................................................... 53 Incofin Investment Management.............................................................................................................................................................. 54 Corporate governance................................................................................................................................................................................... 60 Key figures of Incofin cvso.......................................................................................................................................................................... 70

Microfinancing in practice: Microfinance institution Kompanion contributes to building strong communities in Kyrgyzstan................... 32




INCOFIN annual report 2010

Interview with thE chairman

Interview with

Frans Verheeke Chairman of the Board of Directors of Incofin cvso Frans Verheeke (b. 1934) made his career as general manager and chairman of VDK Spaarbank. He headed this Ghent-based savings bank for 36 years, during which time it expanded into a medium-sized bank offering a wide range of services. Throughout these years he was a passionate social banker, an enthusiasm reflected in his involvement as director of numerous social and cultural organizations. In 1992 Frans Verheeke was one of the initiators of investment fund Incofin cvso. Since then he has been Chairman of its Board of Directors.

Frans Verheeke, for anyone who does not yet know: what is Incofin cvso? Incofin cvso is an investment fund with a distinctly social profile. We invest in the microfinance sector. That means we provide capital that, through local organizations, reaches people in developing countries who are unable to tap the regular banking system. These people want to move out of poverty by developing small-scale economic activities, like chicken farming or setting up a fabric store. For this they need small loans, maybe 100 dollars, maybe 500, occasionally 1,000... This is what we call microcredit. Incofin cvso is active in this sector as an investor. We provide capital to so-called microfinance institutions or MFIs, and these in turn provide microloans to individuals and microenterprises. Where does your commitment to Incofin come from? Why did you take the initiative to set up the fund? I’ve always been interested in socially relevant projects. VDK Spaarbank (savings bank) was established in 1926 with the social purpose of teaching the “little man” to save and take out loans. A good portion of VDK’s social objectives have since been achieved in Belgium,


INCOFIN annual report 2010


but in developing countries the protection of the same “little man” is still very much the order of the day. This is how Incofin came into being, in order to get people outside the Western countries to take their future into their own hands... not through charity, because charity implies a subordinate relationship and leaves the recipient in dependency. But through economic projects, aimed at achieving a return - more specifically a double return: financial and social.

€ 2,991,262

€ 25,090,113

Incofin Cvso Evolution investment portfolio



What for you were the main developments in the microfinance sector in 2010? Overall we can say that the sector, after applying the brakes heavily in 2009, found a renewed impetus in 2010. Although for Incofin let me remark that in 2009 we were not really affected by the slowdown in growth that certain sectors experienced. We continued to grow well, in terms of volume of capital and also of the number of capital investments. Indeed, in 2010, we outpaced the general positive evolution of the sector as a whole. We therefore have ground for satisfaction. Less pleasant, however, and to our regret, is the fact that microfinance was cast into a bad light in 2010 by a number of excesses. Some people over-borrowed, with no apparent way out, while certain lenders started to apply highly aggressive collection techniques... Too bad, because it is a story of just a few rotten apples in a whole basket of good ones. Worldwide in 1997 there were 13 million microcredit borrowers, today there are approximately 150 million. Investment volumes are growing explosively, in certain cases at up to 50 percent per year. A sector with such impressive growth rates inevitably attracts people and organizations who do not play by the rules. Then growth and profit take the upper hand over social purpose, and things get out of hand, as we have seen in among others India.

Interview with thE chairman

As a result, people have begun to question microfinance as a weapon in the fight against poverty. But even so we continue to believe in it unconditionally. Yes, excesses do exist and these need to be addressed. We are heartened that the sector itself is calling for a regulatory framework. Investment funds have a responsibility to screen MFIs thoroughly before investing. Incofin has always played a pioneer role here. Using our ECHOS system, that maps an MFI’s social performance alongside the purely financial parameters, we assess in an objective manner how an MFI treats its customers. An additional problem is that not all countries have adequate governance structures, and that many lack a national level regulator. In our view, the best way to ensure a properly functioning microfinance system is to set up central registers in each country, which can serve to check whether a customer has too many loans outstanding, and strong and effective regulation. Another frequently heard criticism is that the interest rates charged in microfinance are too high. Let me qualify that. We need to consider the specific context in which such credits are awarded. These are small, short-term loans, which require a lot of administration. To collect and pay out funds, people also often have to cover large distances, because in our target markets there is not a bank at every street corner, which increases the expenses as well. And what is the alternative for the local population? Local usurers charging up to 100% interest per week? Compared with this, the 18 to 25% interest rates per year charged by the MFIs are more than reasonable. Until a few years ago the maximum interest rate in Belgium also used to be 20% per year. Look also at the so-called default

“Investment funds have a responsibility to screen MFIs thoroughly before investing. Incofin has always played a pioneer role here.”


10 •

INCOFIN annual report 2010

“We have demonstrated in practice that we do meaningful work, based on solid financial foundations. It is no coincidence that large companies and organizations express interest and join in our story.�

rates, the percentages of microcredit borrowers who are unable to repay their loans: these are very low. These people become resilient and find no great difficulty in repaying their loans. But because this is an informal sector, you do not always find its effects reflected in macroeconomic statistics. For this reason microfinance is unjustly accused of being unable to prove that it really contributes to reducing poverty. But we see concrete results. You stated that Incofin does remarkably better than other players in the industry. Why this success? Up to 2008 many big financial players saw the microfinance market as an interesting way to invest in emerging countries, as a means of diversification and with short term return prospects. Then came a shift with the global crisis. Only now are they venturing back, reluctantly, into the microfinance market. Incofin by contrast, came in this sector from the beginning with a long-term goal. We never went looking for quick profits, but right from day one we have attached as much importance to our social performance as to our financial performance. In this way we have no difficulty in attracting private and institutional investors, in both good financial times and in more testing ones. We have demonstrated in practice that we do meaningful work, based on solid financial foundations. It is no coincidence that large companies and organizations express interest and join in our story. Also important is that we do not pay exceptionally high dividends, but place part of our profits into provisions. This is necessary when you are operating in difficult and uncertain markets. Being recognized as a cooperative means that our dividends are tax-exempt up to 180 euros. This allows us to address not only institutional investors but also private individuals.

Interview with thE chairman

Finally, what are the challenges you see facing Incofin in the coming years? We have a very solid reputation abroad, but we now want to get our organization and the way we operate better known in Belgium. We are also keen to increase the portion of private investors. Our recent recognition as a microfinance development fund enables us to offer them an additional tax benefit of up to EUR 300 per person. Add to that the stability of an investment in our fund and, more particularly the knowledge that your investment is contributing to a fairer, better world, and you know why Incofin is a responsible investment.

• 11



14 •

INCOFIN annual report 2010

Incofin cvso MICROCREDIT AND MICROFINANCE: THE ESSENCE Access to financial services is crucial for the development of any individual, community, or country. Without collateral, property or a regular income, poor people in developing countries do not qualify as an attractive target for conventional banks. It is precisely on such people that microfinance institutions (MFIs) focus, with customized financing solutions. In this way poor people can borrow very small amounts (microcredits). Loans can also be made to groups of people. With rigorous monitoring by the MFIs and thanks to the inbuilt social control mechanisms, this leads eventually to independence. The vast majority of loans are repaid on time, and people see their income and their standard of living expand substantially. In this way people who lack resources but have ideas and initiative are given a lever with which to build a better life for themselves and their families, in their own strength. That, in a nutshell, is the essence of microfinance. Today an estimated 150 million people have access to microcredit, through more than 10,000 MFIs across the world.

3 types of investment Incofin cvso invests in (1) microfinance institutions in developing countries, (2) other microfinance funds, which in turn invest in microfinance and (3) the Incofin Investment Management limited partnership, a microfinance fund advisor.

incofin cvso

VISION Incofin cvso is a high-quality international player which specializes in investments in microfinance institutions. Incofin cvso develops initiatives that have a demonstrable social impact. Incofin cvso is a private initiative in which business companies, unions and employers’ organizations, associations, foundations and private persons, both in Belgium and abroad, participate.

MISSION Incofin cvso invests in sustainable microfinance institutions (MFIs) in developing countries, which offer customized financial services to small entrepreneurs with a view to creating high social added value. Incofin cvso supports MFIs that help enterprising people set up their own businesses, improve their living conditions and thus break the vicious circle of poverty.

Marcel Gerrits

Investment Manager

Noémie Renier

Investment Manager

Alejandra Valderrama

Legal Expert

Mieke Winne

Administration Manager

David Dewez

This chapter is illustrated

with pictures of the team members of Incofin Investment Management who manage the investment

Regional Director

portfolio of Incofin cvso: »» Belgium »» Colombia »» India

• 15

16 •

INCOFIN annual report 2010

SOCIAL RETURN AND FINANCIAL RETURN ON AN EQUAL FOOTING Incofin makes its decisions based on a number of values that direct both the criteria it applies in selecting investments and its relationships with its customers and stakeholders: »»a good balance between customer and profit orientation »»a clear view of customers »»a thorough knowledge of the market and of niche markets »»a varied service offering »»a strong social focus »» transparent communication

A strong social focus: the principle of the “double bottom line”. Incofin attaches great importance to the social impact of its investments. The fund seeks a balance of financial and social return, what it calls a “double bottom line”. It wants to invest in MFIs that make a real difference to the quality of life of their stakeholders, their staff and their customers.

How does Incofin cvso select its investments? Incofin applies clear criteria in its selection of investment opportunities. Incofin takes into account the impact of the microfinance institutions on the local economy, the quality of management, their financial situation, their proven track record and their future prospects. For each investment dossier a thorough due diligence is done of the microfinance institution on site. After the investment, the investment file is carefully followed up.

incofin cvso

Ellen Wouters

Senior Legal Expert

Elien EgaĂąa

Junior Legal Counsel

Juan Carlos Gomez

Senior Investment Manager

Natalie De Geyseleer

Administration Officer

Kaat Van Bosstraeten

Communication Manager

Luce Perez

T echnical Assistance Coordinator

Aditya Bhandari

Wim Van Looveren

Financial Analyst

Rita Van den Abbeel

Chief Financial Officer

Achim Deviaene

Financial Officer

Jerome Birolini

Investment Manager

Private Equity Expert

• 17

INCOFIN annual report 2010

18 •

DIVERSIFICATION AND RISK MANAGEMENT Incofin diversifies its investment portfolio (comprising equity investments and loans) and spreads its risks in a prudent manner based on the risk distribution policy set by the Investment Policy Committee. This policy states that the exposure to any one country or MFI should not exceed 20% and 15% respectively of Incofin’s net asset value. Moreover, Incofin’s entire investment portfolio is insured against country risk with the ONDD (Belgian public credit insurance agency). Incofin’s investment decisions are taken by the Investment Committee, which consists of a qualified team of experts with broad expertise of financial and legal matters. They are familiar with the microfinance sector and are well-placed to judge the risks of a particular investment. The Investment Committee closely monitors the evolution and management of all of these risks.

Geert Peetermans

Chief Investment Officer

Dina Pons

Investment Manager

Dominiek Deconinck

Director Private Equity

Rodrigo Arias Castaño

Senior Investment Manager

incofin cvso

Country risks Incofin invests in developing countries, which are subject to substantial country risks. These risks include political risk (e.g. war or civil war) and transfer risk (inability to repatriate funds invested in the country owing to foreign exchange shortages or other government measures). To cover these risks, Incofin has subscribed an insurance policy with Belgian export credit agency ONDD, covering its entire investment portfolio against the above-mentioned risks (with an excess of 10%).

Market risks Incofin’s investments are also exposed to market and environmental risks, which are not insurable. These risks include the economic environmental factors, legal certainty and the quality of the local regulation of microfinance institutions. Incofin analyses these issues carefully. It also applies a healthy geographic spread in the composition of the portfolio, in order to limit this risk as much as possible.

Commercial risks Incofin invests in microfinance institutions, which in turn grant loans to people who are often unable to present any collateral. It can therefore not be excluded that the microfinance institutions in which Incofin invests may one day become insolvent, in which case Incofin could lose its investment. Incofin manages this risk by: »»conducting a rigorous financial analysis of investees »»evaluating their business plans »»evaluating their management and directors »»calling for regular business reporting »»regular on-site follow-up »» building up provisions.

Currency risks Incofin actively manages its currency risk using hedging techniques (such as currency swaps). Hedging is not available, however, for investments in local currency. But in most such cases the return on investment exceeds the depreciation of the currency concerned. The interest rate and liquidity risks are actively managed by Incofin.

• 19

20 •

INCOFIN annual report 2010

WHERE DOES INCOFIN CVSO DERIVE ITS INCOME FROM? As an investment company, Incofin cvso derives its income from its direct investment portfolio and from its own investments in investment funds. This income consists of dividends on its shareholdings and of interest on loans. Incofin’s financial income from its investment portfolio increases as it expands this portfolio in developing countries. This expansion is made possible by the growth of Incofin’s share capital, which gives the company greater resources with which to invest.

MANAGEMENT In June 2009, Incofin cvso split off the daily management of its investments and placed it in Incofin Investment Management (Incofin IM). Incofin IM at the same time also took over all the other fund advisor activities. Thus, after the split, Incofin cvso became a pure microfinance investment fund, without its own staff.

KEY EVENTS IN THE PAST YEAR Aid for Kyrgyzstan Incofin was severely affected by the ethnic unrest in southern Kyrgyzstan in June 2010. Microfinance institution Kompanion (see also the central photo section of this report) worked actively to help victims of the riots. Together with a number of other organizations, Kompanion provided five tons of emergency aid – including food parcels, care products, medicine and disinfectants – to the city of Osh, at the centre of the riots. Incofin cvso and Incofin Investment Management decided to support this aid initiative with a joint donation of 5,000 euros.

Loïc De Cannière Chief Executive Officer

incofin cvso

Establishment of the Rural Impulse Fund II Incofin IM set up the Rural Impulse Fund II in June 2010. This specialized microfinance fund focuses on poor rural communities. Rural Impulse Fund II is backed by leading public and private financial institutions and investors, including EIB, IFC (part of the World Bank Group), KfW (DE), BIO (BE), FMO (NL), NMI (NOR), the Italian “Microfinanza 1” fund of funds, ACV-CSC Metea, VDK Spaarbank and Bank für Kirche und Caritas in Germany. The Rural Impulse Fund II is aiming at a total volume of 120 million euros, of which 86 million euros has already been pledged in the first closing.

Successful (partial) exit from the Peruvian MFI Financiera Confianza Just before the end of 2010, the shareholders of Financiera Confianza concluded a merger agreement with Caja Nuestra Gente, a Peruvian MFI. Both MFIs specialize in rural microfinance and are geographically very complementary. From now on they will operate as Banconfianza, the first microfinance bank to focus on providing services in the rural areas of Peru. The merger creates a microfinance institution with national coverage that will serve 400,000 customers through over 2,000 employees in 150 branches. Incofin first invested in Confianza in early 2003 when it had approximately 5,000 customers. Over the years the Incofin group accompanied Confianza’s expansion to the entire central region of Peru, including the capital Lima. Through a number of follow-on investments, Volksvermogen, Incofin cvso and Rural Impulse Fund I acquired a joint interest of 28%. The overall portion of all funds together now reduces from 28% to 14%, and that of Incofin cvso specifically from 12% to 6%.

Incofin initiative for Haiti After the devastating earthquake of January 12, 2010 in Haiti, Incofin made a special effort to help microfinance institution ACME. Thanks to the donations paid into Incofin’s account at the King Baudouin Foundation, Incofin was finally able to donate 171,000 euros to ACME’s customers. Most of ACME’s customers lived in the poor neighbourhoods of the capital Port-au-Prince, which are precisely those areas that were very badly hit by the quake. Many of them lost all they had, and continue to live at the time of printing of this report in tent camps. To regain control of their lives, they often come back knocking at ACME’s door for loans to relaunch their business, buy new inventories or to repair their workshops. ACME’s management has decided to help these customers in a number of ways, including with money raised through the Incofin donations account. The outstanding balances of existing loans of customers affected by the quake

• 21

22 •

INCOFIN annual report 2010

have been written off. This means that all debts are forgiven. This decision has heavily impacted ACME’s balance sheet, but at the same time is a great help for customers. With no outstanding debts to ACME they can start again with a clean slate.

Opening of Incofin Americas In May 2010 Incofin Investment Management announced the opening of a new office: Incofin Americas, based in Bogotá, Colombia. David Dewez, a former investment manager at Incofin Investment Management, was appointed to head up the office. With his team he is closely following Incofin’s Latin American portfolio on the ground.

Highly recommended M-Cril, a leading rating agency in the microfinance sector, has rated Incofin cvso on both its financial and its social performance. The report thoroughly analyses both the financial and the social performance indicators, and looks at the management of the fund and the underlying details of the investments. Incofin cvso obtained the highest possible rating (“highly recommended”) for both financial and social performance (see box on next page). With the combination of financial and social performance being one of Incofin’s main objectives from the outset, the board of directors is very proud of this excellent rating.

Stephane Sapor

Investment Manager

Head of Business and Fund Development / Private Equity Manager

Administrative Officer

Sara Vermeir

Alejandra Rodriguez

incofin cvso

Prize for Banco FIE Banco FIE, the Bolivian MFI in which Incofin cvso invests, received the first social performance prize awarded by the Inter-American Development Bank. Banco FIE performed best in terms of social performance in the Latin American region. The price is a very important recognition, both for Banco FIE and for Incofin cvso.

New MFIs in the Incofin cvso portfolio The following microfinance institutions were added to Incofin cvso’s investment portfolio in the course of 2010: »»AB Microfinance Bank Nigeria »»Acorde (Costa Rica) »»Finca Armenia »»TenGer (Mongolia)

LITERALLY M-Cril, a leading rating agency in the microfinance sector, evaluated Incofin cvso. These are the exact words of the assessment of Incofin in the M-Cril report: Financial performance highly recommended due to -- strong management, -- the diversity of the MFIs and other instruments in which it invests, -- optimal use of risk management instruments Social performance highly recommended due to -- the systematic screening of MFIs according to the double bottom-line principle, -- the constant monitoring of investments, -- proactive engagement of the MFIs (especially regarding social aspects), -- high degree of transparency -- pioneering role in certain regions -- focus on respect for people and the environment in equity investments -- investments in MFIs that are not yet profitable -- significant impact in rural environments

• 23



26 •

INCOFIN annual report 2010

Investments by Incofin cvso

Investments by Incofin cvso





t t h e end of 2010, Incofin cvso had investments in 29 microfinance institutions across 22 countries. The total portfolio of investments in microfinance institutions amounts to EUR 25,090,113.

AB Microfinance Bank Nigeria Nigeria loan

5,500,000 portfolio (euro)

8,134 clients

678 average loan (euro)

NGN currency


B Microfinance Bank Nigeria ( A B N ) has provided credit and savings products since November 2008. The loans range in size from 15,000 to half a million Naira (about EUR 70 to 7,000). Borrowers who can demonstrate that they run an existing and viable business are eligible for loans. ABN has six offices in Lagos, the economic capital of Nigeria and one of the world’s fastest growing cities. At the end of 2010, it employed around 250 credit managers. Whenever an additional branch is opened, a new team of credit managers can set to work after four to six weeks of intensive training.

ACEP Burkina Faso


C EP B u r k i n a SA is a pioneer in one of the least developed countries in West Africa. The MFI, which is still in the start-up phase, will support microentrepreneurs in their economic development. In this it can rely on the extensive experience of the ACEP (Agence de Crédit pour l’Entreprise privée) network in French-speaking African countries. ACEP SA Burkina wants to specialize in lending to micro and small enterprises in urban areas. In this way, it seeks to contribute to the economic development of Burkina Faso by meeting the needs of microentrepreneurs who lack access to conventional banking products, while being itself a profitable operation.

burkina faso Equity

XOF currency



C ME was founded in 1997 by the Belgian Bernard Brouwer. In July 2009, this NGO was converted into ACME nv, with Incofin as one of the shareholders. The portfolio grew from EUR 2.7 million in 2005 to 10.2 million in 2010. The smallest loan available is EUR 20. Of all loans, 69% are

Haiti Equity

10,200,000 portfolio (euro)

23,906 clients

464 average loan (euro)

HTG currency

• 27

28 •

INCOFIN annual report 2010


between EUR 20 and 350. ACME has 21 branches, mostly in the capital Port-au-Prince. On January 12, 2010 occurred the great earthquake, which also caused extensive material damage for ACME. Incofin immediately organized a special emergency aid initiative, with an impressive response. The MFI now faces the task of rebuilding its business. Incofin continues to support it in this.



c o r d e, the largest MFI of Costa Rica, provides loans from USD 10,000 to 500,000. The client base consists of SMEs (accounting for 80% of the loan portfolio) and micro-entrepreneurs. Acorde has two branches in the capital San Jose and a call centre which promotes its innovative products and services. The institution works closely with the public sector and has strategic alliances with universities and training centres.

costa rica loan

24,200,000 portfolio (euro)

685 clients

12,791 average loan (euro)

CRC currency



g r o I n v e st is the largest MFI in Montenegro. Its main activity is providing loans for starting business activities in the agricultural sector (which makes up a major share of the domestic economy). Cost efficiency, a flat hierarchical structure and low overheads are central to the way this MFI works. AgroInvest serves all rural areas of Montenegro through eight branches. 40,000 farming families avail of AgroInvest’s services. The MFI is currently operating in a very difficult context. It therefore focuses on optimizing its services and improving the outstanding portfolio.

montenegro loan

27,500,000 portfolio (euro)

17,606 clients

1,559 average loan (euro)

EUR currency

Investments by Incofin cvso


Akiba Commercial Bank tanzania equity

24,200,000 portfolio (euro)

18,973 clients

1,274 average loan (euro)

TZS currency


kiba Commercial Bank (ACB) has been operational since 1997. The bank is owned by 270 shareholders - mostly Tanzanian citizens, but also including a small number of international investors. ACB provides microcredit tailored to SMEs, government institutions and the retail sector. Customers are located predominantly in Dar-es-Salaam and the large urban areas in northern Tanzania, like Arusha and Moshi. ACB has contributed to the development of the local financial sector by introducing best practices and launching innovative products.

Azercredit Azerbaijan loan

20,100,000 portfolio (euro)

35,868 clients

560 average loan (euro)

USD currency


z e r C r e d i t obtained its banking licence in 2003 and is today the third largest MFI in the country in terms of number of customers. The bank is represented in both rural and urban areas. As a member of the World Vision group, AzerCredit enjoys support in fundraising and institutional strengthening. 71.3% of the credit portfolio of over USD 23 millio consists of loans to individuals and 28.7% of group loans. The network covers the country’s

main economic centres through seven main branches and fourteen sub-branches. AzerCredit will continue to extend this network with main and sub-branches in the countryside, where agriculture constitutes the main economic activity.

banco FIE


h e r e a s the first Banco FIE outlets were mainly in cities and provincial towns, the MFI began from 2007 onwards to move into more rural areas. The new Bolivian law that allows financial intermediaries to work with agents offers the necessary perspectives to bridge the long distances and to circumvent the disadvantages of poor infrastructure. Banco FIE has 104 branches in all nine Bolivian departments. 48% of the portfolio is located in La Paz and El Alto. In remote areas Banco FIE shares office space with similar institutions in order to develop professional and cost-efficient services. Banco FIE promotes social responsibility and sustainable business.

bolivia loan

43,500,000 portfolio (euro)

108,013 clients

402 average loan (euro)

USD currency

• 29

30 •

INCOFIN annual report 2010

Banco Fie

Crecer bolivia equity

309,700,000 portfolio (euro)

146,816 clients

1,898 average loan (euro)

BOB currency


recer (Credito con Educ a c i ó n R u r a l ) was founded in 1990 as a joint project by Freedom From Hunger (FFH) and Plan International. With a market share of 30%, it is today the largest non-governmental microfinancier in Bolivia. Crecer serves the entire country through 61 offices in the 9 Bolivian departments. Credit managers are recruited from the local population so as to acquire a good understanding of their customers’ needs. Crecer is keen to develop new products for its customers, including health insurance, in the near future.

Credo georgiA loan

24,800,000 portfolio (euro)

43,172 clients

522 average loan (euro)

USD currency


r e d o is one of the leading agricultural lenders in Georgia. This position it owes to its quality service, product innovation and vision. The MFI approaches the market with a dozen credit products. In 2010 its share of agricultural loans grew to 55.8%, while its share of urban lending decreased to 25.8%. The tourism industry is also demanding a place in the portfolio. With sixteen branches Credo’s network is smaller than that of its competitors, but more successful thanks to the agency model that

was introduced with the support of AgroInvest. The intention remains to open additional sites in rural towns in order to achieve a better distribution.

Edpyme Proempresa


r o e m p r e s a focuses heavily on small and microenterprises in the cities and suburbs. 84% of its credit portfolio consists of loans to microenterprises, 5% of loans to consumers and 11% to SMEs. The average credit sum is USD 1,100. Proempresa has thirteen offices in Lima, one in the neighbouring city of Huacho and another three in the southern cities of Arequipa, Ayacucho and Andahuaylas. During the past year it opened new branches in Trujillo and Huancayo.

peru equity

42,900,000 portfolio (euro)

39,622 clients

919 average loan (euro)

PEN currency

Edpyme Solidaridad


d p y m e S o l i d a r i d a d was established under a USAID project that is seeking to combat poverty in different provinces of the Andes. In many regions it is the sole MFI. Edpyme Solidaridad

peru loan

19,400,000 portfolio (euro)

18,849 clients

Investments by Incofin cvso


859 average loan (euro)

USD currency

finances by preference alternative forms of (agricultural) activity, which are less risky and more profitable than working the land. Its group loans range between USD 140 and 1,700, and individual loans between USD 30 and 800. The 12 main branches and 27 smaller outlets are located in small rural regions and cities. Edpyme Solidaridad is investing heavily in renovating its offices and in new branding, as required by the local financial authorities.

Espoir ecuador loan

20,600,000 portfolio (euro)

53,146 clients

3,973 average loan (euro)

USD currency


undación Espoir has more than 53,000 active borrowers with a total outstanding portfolio of USD 20,000,000, mainly in the form of loans. The institution grants loans of between USD 200 and 1,500 to microentrepreneurs. Two years ago, it started making personal loans from USD 1,000 to 8,000. Espoir runs a ‘credit + training’ programme for women in rural areas, following a model developed by the American NGO Freedom From Hunger. Espoir has six offices, six subbranches and eight contact points in five provinces of Ecuador. The MFI wants to expand into the small rural towns through non-bank outlets (shops and pharmacies).

FIE Gran Poder


his spin-off of FIE Bolivia has been in existence since 2001 and is active in Buenos Aires. FIE-GP’s target group lives mainly in the suburbs (10 million inhabitants). Many of them are economically disadvantaged persons working on a self-employed basis. A study shows that this region contains more than 440,000 potential borrowers. FIE-GP has eight branches. Economic activity in the barrios consists primarily of manufacturing companies, especially textile workshops with one to twenty employees. For this reason FIEGP limits its activity to providing personal business loans. Given the enormous potential this remains the core activity for the coming years, even though it also offers other facilities such as home loans.

argentinA equity

11,000,000 portfolio (euro)

9,687 clients

1,137 average loan (euro)

ARS currency

• 31

32 •

INCOFIN annual report 2010

Microfinancing in practice

Microfinance institution Kompanion contributes to building strong communities in Kyrgyzstan Kompanion , founded in 2004, is the largest microfinance institution in Kyrgyzstan. With 900 employees in 90 branches, Kompanion is active across the country, even in more difficult-to-reach rural areas.

The financial institution serves 119,000 customers, which is more than one third of all microfinance borrowers in Kyrgyzstan.

Investments by Incofin cvso

• 33

34 •

INCOFIN annual report 2010

RELATIONSHIP BANKING IN PRACTICE Songbae Lee, CFO AT Kompanion (Bishkek) Working together with Incofin has been a fantastic experience. I used to work in banking in the U.S. There everyone spoke about “relationship banking”, but it is here that for the first time I have experienced what this means in practice. Incofin works closely with Kompanion, building up a relationship that goes far beyond merely negotiating prices and closing a business deal. A telling example of our experience with Incofin came in 2010, when the government was overthrown by a revolution, and ethnic fighting broke out in parts of the country. Our lenders responded in different ways. Some of them called a halt to all domestic lending and one of them even cancelled a previously signed contract. Incofin however, took the initiative to get in touch with Kompanion, with a proposal to delay the repayment of an existing credit that was approaching maturity. This was possible thanks to the close relationship we already had built. They had a clear vision of the working conditions in Kyrgyzstan and of Kompanion’s financial health. And they keep their word when it comes to long-term commitments with customers and with the MFI markets on which they operate. Kompanion values highly such partnerships.

Incofin repeatedly proposed new initiatives to Kompanion, which more than covered our basic financial needs. Examples of this approach include their nominating Kompanion for an award for our work in value chain finance (financing of small manufacturers or retailers, where the existence of a stable relationship with certain suppliers or customers is viewed as sufficient collateral, editors’ note) and of course their donation for the victims of the fighting in the south of the country. They themselves pointed to areas where we could use help, even before we ourselves could think of it. For example, when financial aid was available, they alerted us to this, and helped us consider which of our applications might be eligible. This led, inter alia, to Incofin awarding us a grant (with funding from FMO) to enable us to bring in specialist assistance, as we push ahead in our development and are keen to obtain a banking licence to enable us to also offer microsavings to our clients.

Investments by Incofin cvso

• 35

36 •

INCOFIN annual report 2010



u s t o m e r service is central to Kompanion. For each customer Kompanion goes looking for the appropriate financial product. For this reason it offers both individual loans and group loans. Borrowers use these loans for small income-generating activities but also for larger, growing companies. Kompanion also offers mortgage loans and employee loans.

Investments by Incofin cvso



o m p a n i o n presents itself as an institution dedicated to community development. This means that it not only provides financial services, but also launches initiatives to strengthen local communities. For this purpose the Kompanion staff maintains close ties with its end customers.

• 37

38 •

INCOFIN annual report 2010



v e r y year an apple festival is held with support from Kompanion, and 2010 was no exception. In October, 400 people from 40 villages in the regions of Naryn and Issyk-Kul came together to celebrate the apple harvest. During roundtable discussions, they exchanged views on important ecological and economic issues that may affect their activities. Kompanion also made available a team of specialists to advise participants on horticulture, gardening, gardens and garden layout and the breeding and keeping of pets.

Investments by Incofin cvso



h a t Kompanion does more than provide funding became even clearer in the summer of 2010. The south of Kyrgyzstan faced violent ethnic unrest during which, particularly among the Uzbek minority, caused many hundreds of casualties and forced thousands to flee their homes. Together with other organizations, Kompanion launched an emergency aid initiative, which was also supported by Incofin. Together they collected five tons of food parcels, care products, medicine and disinfectants.

• 39

40 •

INCOFIN annual report 2010

Investments by Incofin cvso

OUT OF LOVE FOR THE JOB ADILA ASANBEKOVA, CREDIT MANAGER, BARSKOON Adila Asanbekova is a credit manager at the Barskoon office. She is a member of the “Five Hundreds Club”, which recognizes Kompanion employees who serve more than 500 customers. Adila has worked for Kompanion since 2008. “In my early days at Kompanion I made horticulture loans,” she says. “I always wanted to work with a company that encourages creative activities. I attended a training course in farming techniques for gardening. The people listened with great enthusiasm to the Kompanion agronomists and I thought, what we do is really important.” 103 customers of Adila have received loans for their horticultural activities. This was under the Apple Project, which Kompanion started up in 2005-2006 in the villages of Tamga and Tosor near Issyk-Kul. “With the loans from Kompanion I planted 400 trees over a period of several years. With my first loan I could plant ten trees, but when I saw the results I decided to plant more”, says Isa Satybaldiev, a customer to whom Adila granted a loan. “With the help of Kompanion we

have more confidence in the future. The fruit trees are growing and are providing an income for my family. We would like to build a big house for the entire family and also grow other crops. Through Kompanion I learned techniques that I will convey to my children and neighbours.” This is just one of the many success stories from Adila’s customers. Today she manages a portfolio of 542 clients, representing a loan portfolio of almost USD 200,000 with a 100% repayment rate. Adila owes this success to her ambition, her professionalism and her love for the job. Her success is measured not only by the size of her portfolio, she is also an excellent mentor for new employees. Her achievements are a good example of continuing service to customers. Her motto is “Rest makes you rust!”.

• 41

42 •

INCOFIN annual report 2010

Investments by Incofin cvso



h e investment in Kompanion fits perfectly into Incofin’s strategy. With each investment Incofin seeks to balance financial and social objectives. As well as being a microfinance institution with a sound financial structure, Kompanion is also an organization that scores very well socially. With a focus that includes human resources, customer satisfaction and the environment, Kompanion is a good example of a microfinance institution that Incofin is ready to ‘go the extra mile’ for.

• 43

44 •

INCOFIN annual report 2010

100 TREES, THANKS TO KOMPANION Yrys Kenjebayev, ONE OF MANY KOMPANION CUSTOMERS IN THE VILLAGE OF TOSOR Yrys Kenjebayev lives with his family in Tosor, a village in the oblast (province) of Issyk-Kul. They possess a well-kept orchard with over a hundred apple and apricot trees, the pride of the family. Yrys remembers how he prepared a plot of land and planted seedlings. He picked and sold the apples, but was insufficiently instructed in agricultural practices to improve their quality. In 2005, Kompanion’s “Apple Project” was launched in the village. Yrys was immediately interested. He registered and asked all sorts of questions to Kompanion’s agricultural experts. “Step by step I learned to maintain my fruit trees”, says Yrys. “I learned how I could improve the soil by removing the stone layer and how I could replant trees. It took us quite a lot of trouble, but now we are literally plucking the fruits of healthy trees, full of fruit.”

Yrys remembers how he concluded his first loan to buy apple and apricot seedlings. He realized that the loan helped him not only to build a successful business, but at the same time he learned how to maintain his orchard. He decided to take a new loan to build a cellar. This time, for the building work, he was able to call on the Kompanion construction specialists. In 2010, a third loan followed in order to cultivate more land. Yrys says: “I will soon be buying a few hives to develop my work as a beekeeper.” And he concludes: “With Kompanion’s help, we have started a family business. In this way we can grow and have a bigger income.”

Investments by Incofin cvso

• 45

46 •

INCOFIN annual report 2010


Financiera Confianza peru equity

100,300,000 portfolio (euro)

75,813 clients

1,192 average loan (euro)

pen currency


i n a n c i e r a c o n f i a n z a has been active in Peru since 1998 and provides financial support to small and micro enterprises in both urban and rural areas of Peru. Today, it specializes in microfinance and microinsurance, but is also an approved pension fund institution. Confianza has 26 branches and 10 sub-branches in all economically dynamic areas of the country. Thanks to the MFI, customers gain productivity, employment is created and quality of life improves. Special attention is paid to the female target group, including a specific credit product with an educational dimension. At the end of 2010 Confianza signed a merger agreement with Caja Nuestra Gente. From now on they will operate together as Banconfianza, the first microfinance bank focusing on rural areas in Peru.

FINCA Armenia Armenia loan

19,000,000 portfolio (euro)

37,975 clients

500 average loan (euro)

AMD currency


i n c a is the largest MFI in Armenia in terms of clients and credit portfolio. Finca was founded in 1999 with the American network Finca International as the sole shareholder. 25% of the loan

portfolio (= 40% of customers) goes to rural areas to finance trading, agriculture and livestock breeding. More than 37,000 Armenian borrowers have obtained loans averaging USD 500. With nineteen branches, Finca Armenia covers the most densely populated regions of the country. four new branches are planned. The loan portfolio is spread over three categories: personal loans, group loans and rural activities.

Finca congo


i n c a DR C was founded by Finca International in 2003. It provides easy access to financial services to people from the lowest income groups. It was one of the first microfinance institutions in the country and wants to become the largest by means of a marketdirected offering. Finca DRC has five branches, focuses on urban commercial centres and provides loans to individuals and village communities. The loan portfolio stands at over USD 10 million. More than 60,000 customers (an increase of 22.3%) have average loans of USD 337. MFI also manages an additional USD 4.2 million in customer savings.

congo DRC loan

11,000,000 portfolio (euro)

61,825 clients

178 average loan (euro)

usd currency

Investments by Incofin cvso


Finca Jordan jordan loan

3,500,000 portfolio (euro)

10,804 clients

326 average loan (euro)

usd currency


i n c a has been providing microcredit in Jordan since 2007. Finca Jordan has a headquarters in Amman, three branches in Al-Hussein, Hitten and Zarqa and four agencies. Finca focuses on rural areas with widespread poverty. It stands out from the competition with a diversified product offering, including group loans (small businesses and women), Islamic credits, flexible working capital loans and SME loans. The average loan is under USD 600. 98% of customers are women.

Forjadores mexico loan

13,200,000 portfolio (euro)

53,520 clients

246 average loan (euro)

MXN currency


e x i c o ’s microfinance sector has developed considerably in recent years. In 2005 a number of experienced local microfinance experts set up ‘ForjadoresNegocios’, which operates mainly in rural areas and works exclusively with female clients. Group loans make up 92% of its portfolio. Each group consists of no less than nine and no more than thirty members. Forjadores’ nineteen branches can present impressive growth figures: in December 2010 it had 53,500 customers. The main shareholder is the ACP Group, a solid partner that is also the main shareholder of the large Peruvian MFI Mibanco.

The ACP Group is focusing on the development of several MFIs in Latin America.

Fundación alternativa


he NGO Fundación Alternativa para el Desarollo was founded in 1991 by private entrepreneurs and local social players. The goal was to start up projects with a financial and social impact in deprived areas of Ecuador. Alternativa is a founding and active member of Fome (Forum of the Micro Enterprise)

ecuador loan

4,900,000 portfolio (euro)

5,074 clients

1,500 average loan (euro)

USD currency

• 47

48 •

INCOFIN annual report 2010

fundación alternativa

and RFR (Red Financiera Rural). It was also a co-founder of the Grupo Solidario and of Banco Solidario. Fundación Alternativa focuses on financial services, supporting migrants returning to Ecuador and training and advising public organizations, commercial businesses and voluntary associations. The six current branches are located in the northeast of the country. In 2011, however, two new branches were opened in the provinces of Chimborazo (province with the highest illiteracy rate) and Napo (the economically least developed province).

HKL cambodIa loan

33,000,000 portfolio (euro)

47,952 clients

689 average loan (euro)

usD currency


a t t h a K a k s e k a r is an NGO that was set up in 1996 at the initiative of Oxfam Quebec as a food security project in the province of Pursat. Hattha Kaksekar Limited (HKL), which has been active since 2001, invests primarily in rural areas of Cambodia (representing 65% of customers), where agriculture and fishing are the main economic activities. Besides its headquarters in Phnom Penh, HKL has 24 branches in 11 provinces. For the near future it is planning to extend into three southern provinces. HKL provides both personal and group loans. Loans run between USD 25 and 15,000.



n 1999, the National Association of Businesswomen in Tajikistan and Mercy Corps set up the very first microfinance project in the country. IMON International focused from the outset on entrepreneurs in wholesaling and retailing, service industries and small-scale manufacturing. 63% of loans are group loans, representing 32% of the outstanding portfolio. Personal loans account for a share of 56%. The largest loan granted amounted to USD 20,000. Apart from its headquarters in Khujand (second largest city in Tajikistan), IMON International has nine branches in the three regions of the country, where some 90% of the population lives.

Tajikistan loan

25,400,000 portfolio (euro)

28,900 clients

875 average loan (euro)

usD currency



i n c e 19 8 1 K e n y a W o m e n F i n a n c e Tr u s t has been Africa’s largest financial institution that works exclusively with and for women. KWFT finances female entrepreneurs so as to improve their economic status and quality of life. No institution penetrates deeper into the cities and rural areas of Kenya. KWFT has more than 400,000 affiliated members. Besides business loans, KWFT also offers savings products,

Kenya loan

119,100,000 portfolio (euro)

416,813 clients

274 average loan (euro)

EUR currency

Investments by Incofin cvso


consumer loans, credits for clean energy projects and mobile banking. Customers enjoy advantageous prices, attractive interest rates, a safe savings environment and a female-friendly service (like mother and child space in any office and ATM machines).

MBK Ventura indonesiA loan

12,600,000 portfolio (euro)

211,155 clients

60 average loan (euro)

IDR currency


itra Bisnis Keluarga Vent u r a ( M B K ) is an Indonesian microfinance institution that was founded in 2003 and focuses exclusively on rural women in Java. At the end of 2010, MBK had around 200,000 clients and a loan portfolio of EUR 12.6 million. With group loans ranging from EUR 70 to 490, MBK succeeds in reaching very poor women, most of whom do not own land and are illiterate, and who live from small livestock farming, snack stalls or vegetable growing. In 2010-2011, MBK intends to launch a new product, ‘Working Capital for Small Enterprises’, in amounts of USD 500 to 1,000. 1,200 people work at MBK Ventura, in 160 branches.



r e s t a n i c was established in 1991 in Managua as the microcredit department of the NGO CEPAD. Today, the MFI has eighteen branches in the centre and west of the country. Prestanic has focused from the outset on agricultural activity. 70% of the portfolio is microfinance for livestock breeding. Loans are also made for vegetable farming, trading, services and small businesses. Personal loans run between USD 125 and 20,000. Potential borrowers’ repayment ability is evaluated using e-scoring software. Due to the ‘Movimiento de no pago’ (no payment movement) in 2009, Prestanic is facing difficulties. Incofin is closely monitoring this MFI.

nicaragua loan

8,900,000 portfolio (euro)

10,859 clients

819 average loan (euro)

USD currency

SEF International


m a l l E n t e r p r i s e F u n d ( SE F ) I n t e r n a t i o n a l has grown from the World Vision Armenia Micro Enterprises Development Programme (MED). Since 1998 it has been known as the largest MFI in the country. It is also Armenia’s third non-banking financial institution. SEF International is well represented in rural and agricultural loans, thanks to its cooperation with Ardshin invest bank, the bank

armenië loan

5,900,000 portfolio (euro)

8,219 clients

667 average loan (euro)

usd currency

• 49

50 •

INCOFIN annual report 2010

SEf international

with the most widely distributed network in Armenia. SEF International’s high quality and diversified portfolio is divided into agricultural loans (27.4%), business loans (44.4%), construction loans (4.8%) and consumer loans (23.4%). It has nine branches in four of the eleven Armenian regions.

Seilanithih cambodIa loan

5,700,000 portfolio (euro)

14,395 clients

389 average loan (euro)

USD currency


i t h n e a r l y 15 , 0 0 0 b o rr o w e r s, Seilanithih (established in December 2003) is one of Cambodia’s most successful MFIs. The target group consists of farmers (for group loans) and micro­enterprises (for microfinancing). The group loans range between USD 25 and 600, and personal loans between USD 100 and 5,000. Consumer and business credit facilities are also offered. In addition, a loan product has been created for farmers who have followed training programmes by the Provincial Department of Agriculture, Forestry and Fisheries. Seilanithih employs 165 employees in 23 branches.



e m i S o l started in 2004 and inherited then the credit portfolio of the NGO Funda Chiapas. The MFI has developed five products, of which group loans of up to USD 3,000 are the most important. Members can also borrow parallel loans to cushion peak needs. 79% of the loan portfolio

mexico loan

3,600,000 portfolio (euro)

10,582 clients

337 average loan (euro)

usd currency

Investments by Incofin cvso

consists of loans of less than USD 1,000. Since last year SemiSol has also provided personal loans and construction loans. Most customers are from the highly rotating retail area, especially in the food and clothing sectors. SemiSol has nine branches and is represented in the coastal region of Chiapas and in Comitรกn, where it opened an office during the past year. This immediately provided a

breakthrough into a new market, given the huge differences between the two regions in terms of climate and population.



e n G e r is an investment holding company with interests in four subsidiaries in Mongolia: XacBank LLC, XacLeasing LLC, Horus Nomadic Solutions LLC and TenGer Insurance LLC, all market leaders with significant growth potential. The group was formed in 2001 following the merger of Goviin Ehlel (founded in 1999 by Mercy Corps) and X.A.C. (set up in 1998 by the United Nations Development Programme). Both were non-banking institutions with a focus on microcredits for the SME sector. In 2008, XAC-GE LLC was renamed TenGer Financial Group LLC (TFG).

mongolia loan Holding company, does not issue loans

EUR currency

โ€ข 51

52 •

INCOFIN annual report 2010




n c o f i n c v s o does not invest only in microfinance institutions. The fund is also a shareholder in three other funds: Impulse Microfinance Investment Fund, Rural Impulse Fund and MFX Fund. These investments total EUR 2,412,907.

Impulse Microfinance Investment Fund Impulse Microfinance Investment Fund is a Belgian investment fund for microfinance with an investment portfolio of EUR 40,506,702 (at 31/12/2010). With an investment of EUR 1,000,000, Incofin cvso holds 7.03% of the capital of Impulse Microfinance Investment Fund. The fund advisor of Impulse Microfinance Investment Fund is Incofin Investment Management.

Rural Impulse Fund Rural Impulse Fund is a Luxembourg-based investment fund for rural microfinance with an investment portfolio of USD 33,489,997 (at 31/12/2010). Incofin cvso has a shareholding of EUR 1,036,882, representing 16.67% of the capital. The fund advisor of Rural Impulse Fund is Incofin Investment Management.

MFX Fund MFX Fund is a US fund that provides currency exchange rate hedging for investment funds. This allows Incofin cvso to offer hedged local currency financing to MFIs, also in countries where this is not possible through conventional avenues. This shareholding amounts to EUR 376,025. The Incofin share represents 5.51% of the capital.



Impulse Microfinance Investment Fund

Rural Impulse Fund

Investments by Incofin cvso



n c o f i n c v s o is the silent partner, with a 51% equity stake, in the Incofin Investment Management limited partnership. Incofin Investment Management was founded on June 25, 2009. Incofin Investment Management is fund adviser to six microfinance funds.


MFX Fund


Incofin Investment Management

*Incofin cvso’s share of capital


• 53

54 •

INCOFIN annual report 2010

Incofin Investment Management At the end of 2009 the Board of Directors of Incofin cvso decided on a structural change. In this way the development and advising of microfinance funds was placed in the separate company Incofin Investment Management (Incofin IM). This separating of the investment and advisory functions avoids potential conflicts of interest. Incofin Investment Management was founded on June 25, 2009 as a limited partnership with Incofin cvso as the silent partner and Incoteam (the company providing the management) as the active partner. The silent partner has limited liability and is not involved in the management of the company.

THE ACTIVITIES OF INCOFIN IM Incofin Investment Management manages six funds totalling EUR 274 million. The product portfolio consists of loans, equity investments and subordinated loans.

THE STRENGTHS OF INCOFIN IM Within Incofin Investment Management, an international and multilingual team of 25 experts works to provide tailored financial solutions. Incofin has particularly wide experience with microfinance and international markets and contacts with investors worldwide. Incofin Investment Management’s methods

are fully aligned with those of Incofin cvso. Incofin IM too pursues a “double bottom line” approach, with financial and social performance on an equal footing. These are evaluated using the ECHOS© tool and the CRS risk management tool.

THE INCOFIN IM WORKING METHOD Candidate investments are evaluated by Incofin Investment Management according to strict investment criteria. Approval of the general conditions is followed by a detailed study of the microfinance institutions. After this, Incofin Investment Management carries out an in situ audit, which includes completing the ECHOS© questionnaire. If the MFI meets all the criteria for social performance and financial profitability, the Investment Committee can give the green light. Incofin Investment Management closely monitors all investments, performs annual audits and reports back to shareholders.

ECHOS©: measuring social performance Investing in MFIs is not sufficient in itself to be recognized as a “social investor”. Incofin wants in the first place to invest in MFIs that are able to demonstrate a high social impact. Incofin measures MFIs’ social performance using the ECHOS© tool, which it has developed in-house.

Investments by Incofin cvso

MFIs applying for an investment from Incofin go through a detailed procedure. This includes a field audit, with the ECHOS© questionnaire as a basis. On this basis the social performance score of the MFI in question is scored, in five dimensions: »»Mission and vision »»Treatment of the environment and contribution to society »» Scale and growth prospects »»Human resources »»Level and quality of service The average score of the MFIs that have been screened on the basis of ECHOS©, was 72%. MFIs that score below 50% are not eligible for Incofin funding. Further analysis has revealed a strong correlation between the financial soundness of an MFI and its social performance. MFIs that score well financially also score well on social parameters.

Five dimensions to assess the social performance of MFIs Mission and vision

Treatment of the environment and contribution to society

Human resources

Scale and growth prospects

Level and quality of service

• 55

56 •

INCOFIN annual report 2010

The funds managed by Incofin Investment Management INCOFIN CVSO






Private enterprises and individuals

Development banks and European financial sector

Development banks and European financial sector




Early stage investment in high potential microfinance institutions, with a focus on social performance

Investing in commercial microfinance institutions offering financial services in disadvantaged rural areas

Investing in commercial microfinance institutions offering financial services in disadvantaged rural areas




Loans and equity investments

Loans and equity investments

Loans and equity investments


MilLion euro


MilLion euro


MilLion euro

Investments by Incofin cvso







European financial sector, private enterprises and individuals

VDK (Belgian retail bank)

Volksvermogen (Belgian investment company)




Investing in microfinance institutions at a later stage

Investing in large and welldeveloped microfinance institutions

Selective investment in microfinance institutions and SMEs in developing countries




Loans and equity investments


Loans and equity investments


MilLion euro


MilLion euro


MilLion euro

• 57



60 •

INCOFIN annual report 2010

Corporate governance MANAGEMENT STRUCTURE Executive Committee »»Frans Verheeke (Chairman) »»Willy Bosmans »»Jos Daniëls »»Eric Delecluyse »»Johan De Schamphelaere »»Yvan Dupon »»Paul Steppe »»Ann Van Impe The Executive Committee is responsible for preparing and monitoring the current and long-term strategies, objectives, plans and budgets, and for following up the general business of the company. The Executive Committee met four times in 2010.

Board of Directors The Board of Directors met twice in 2010. Members of the Board of Directors receive no remuneration or fringe benefits of any kind. The Board of Directors of Incofin cvso holds a two-day meeting every two years, at which it discusses its corporate strategy in particular in the light of its results, its future prospects and developments in the microfinance sector. The most recent strategic exercise took place in February 2011.

Corporate governance

Chairman Independent

Chairman Volksvermogen, Chairman Hogeschool Gent

Willy Bosmans

WB Management BVBA


Benoît Braeckman

Suez / Fonds Maria Janssens - Braeckman

Former head asset manager Electrabel

Erik Bruyland

Roularta Media Group

Senior journalist at Trends

Jos Daniëls

VKW Synergia vzw

Honorary Chairman of the Board of Directors

Eric Delecluyse

ACV Voeding en Diensten

Former Chairman ACV Voeding en Diensten

Frank De Leenheer


Investor Relations & Corporate Communications Manager

Johan De Schamphelaere

VDK Spaarbank

Chairman of the Management Committee, VDK Spaarbank

Rein De Tremerie


General Secretary ACV-CSC Metea

Emmanuel Doutrepont

Food Industry Social Fund

Vice-President, Food Industry Social Fund

Yvan Dupon

Yvan Dupon Consult BVBA


Michiel Geers


Secretary General Volksvermogen

Tony Janssen


Former President, ACV Metaal and European Metalworkers' Federation

Frans Verheeke Directors

Majin de Froidmont

Fanny Machiels

Group Machiels

General Manager, Machiels Group

Guy Pourveur

Anonymous families

Company Director

André Sarens


Head of Belgian Grid Participations

Paul Steppe

KBC Group

Honorary Chairman Executive Committee Centea

Marc Timbremont


Managing Director, Huisvesting Het Volk

Peter Van den Brock


Director (retired) Pax-Bank, Management Board of the Pax-Bank-Stiftung

Walter Vandepitte


Honorary Chairman, AVEVE Group

Luc Van Dessel

ACV Bouw - Industrie & Energie

Chairman Managing Director, N.V. Van de Velde

Roland Van der Elst

Former professor EHSAL

Herman Van de Velde


Ann Van Impe

VDK Spaarbank

Legal adviser VDK Spaarbank

Henri Vansweevelt


Former Vice-President Bekaert Group

Frank Vereecken

VDK Spaarbank

Assistant Director, Securities Department, VDK Spaarbank

Lyn Verelst


General Manager, Solid

Martine Verluyten


Chief Financial Officer, Umicore

Dirk Vyncke

Vyncke Energietechniek n.v.

Chairman of the Board, Vyncke Energietechniek

Honorary Directors Frank Lambert

Chairman, Antwerp Management School Fund for sustainable and innovative entrepreneurship

Jozef Lambrechts †

Honorary Managing Director, Kredietbank (now KBC)

Guido Lamote

Director, Trias

• 61

62 •

INCOFIN annual report 2010

Board of Directors Henri vansweevelt - Emmanuel Doutrepont - Frank vereecken - paul steppe roland van der elst - tony janssen - benoĂŽt braeckman - johan de schamphelaere michiel geers - willy bosmans - martine verluyten - frans verheeke

Corporate governance

• 63

yvan dupon - frank de leenheer - andrĂŠ sarens jos daniĂŤls - marc timbremont - guy pourveur - walter vandepitte eric delecluyse - rein de tremerie - ann van impe - herman van de velde - dirk vyncke - peter van den brock

not on the picture:

Luc Van Dessel - Majin de Froidmont - Fanny Machiels - Erik Bruyland - Lyn Verelst

64 •

INCOFIN annual report 2010

Investment Committee »»Frans Verheeke (Chairman) »»Johan De Schamphelaere »»Michiel Geers »»Tony Janssen »»Peter van den Brock »»Walter Vandepitte The Investment Committee is responsible for implementing the company’s investment policy, as defined in the Investment Policy document. The Investment Committee is composed of members of the Board of Directors who have specialist knowledge of financial affairs and development issues. The Committee met six times in 2010.

Audit Committee »»Roland Van der Elst (Chairman) »»Marc Timbremont »»Henri Vansweevelt The Audit Committee supervises the company’s procedures and processes, and all aspects of risk and risk the management. The Audit Committee is made up of members of the Board of Directors. The Committee met once in 2010. The members of the above committees are not remunerated.

Auditor Deloitte Bedrijfsrevisoren, represented by Frank Verhaegen and Maurice Vrolix

Shareholders Incofin cvso issues shares worth EUR 2,604 per share (nominal value of EUR 2,480 euros + 5% share premium) and 1/20th shares worth EUR 130.20 (nominal value of Euro 124 + 5% share premium). The share capital of Incofin cvso increased in 2010 by EUR 2,376,583, reaching EUR 14,158,072 at the end of December 2010. The number of shareholders rose from 308 to 332. Capital growth remains important for Incofin cvso to meet the growing demand from MFIs for equity investments. Incofin cvso is recognized as a cooperative by the National Council for Cooperation (NRC) as from August 1, 2009. This decision was published in Belgian Official Gazette of November 27, 2009. This recognition means that private investors are exempt from withholding tax on

Corporate governance

dividends up to a maximum of EUR 180 (indexed amount). Since 2010 Incofin cvso has been recognized as microfinance development fund. Thanks to this recognition investors buying shares for a minimum amount of 350 euro, can obtain a tax reduction of 5% (with a maximum reduction of 300 euro). Volksvermogen

Banks & Holding Companies

1,438,400 €



Professional associations

1,202,800 €


VDK Spaarbank

Banks & Holding Companies

843,200 €


Social Fund for Food industry Employees

Professional associations

669,600 €



Foundations, associations and cooperatives

565,440 €


ACV Voeding en Diensten

Professional associations

496,000 €



Industry & Businesses

496,000 €

3.50% 2.88%

KBC Private Equity

Banks & Holding Companies

407,960 €


Industry & Businesses

379,440 €


Yvan Dupon Consult BVBA

Private individuals

295,120 €



Banks & Holding Companies

285,200 €


VKW Synergia vzw

Professional associations

263,500 €


WB Management

Private individuals

262,880 €


Social Fund of the Food Industry

Professional associations

252,960 €



Industry & Businesses

250,480 €


Van der Elst, Roland

Private individuals

248,000 €



Private individuals

248,000 €


Stiftungsfonds Kirche und Caritas der Bank im Bistum Essen

Banks & Holding Companies

248,000 €


ACV Construction - Industry & Energy

Professional associations

248,000 €



Industry & Businesses

238,080 €

1.68% 1.68%

King Baudouin Foundation

Foundations, associations and cooperatives

238,080 €

Gillès Foundation

Foundations, associations and cooperatives

215,760 €


Stichting Maria Janssens-Braeckman

Foundations, associations and cooperatives

202,368 €


Vandersanden, Constant

Private individuals

198,400 €



Professional associations

177,320 €



Industry & Businesses

177,320 €


Willemen Johan

Private individuals

148,800 €



Banks & Holding Companies

148,800 €


Shareholders < 1.00%

3,307,204 € 23.37% 14,153,112 €

• 65

66 â&#x20AC;˘

INCOFIN annual report 2010

Corporate governance

â&#x20AC;˘ 67



70 •

INCOFIN annual report 2010

Key figures

of Incofin cvso SOCIAL PERFORMANCE Incofin cvso has investments in 29 microfinance institutions in 22 countries. Together, these MFIs reach 1,519,192 clients, of whom 76% are women. The involvement of these local intermediaries creates a powerful leverage effect for the Incofin investments. The combined loan portfolios of the MFIs in which Incofin invests amount to EUR 952 million. The MFIs in Incofin’s portfolio are healthy and efficient financial institutions: they have good quality loan portfolios (with limited delinquency), they keep their overheads under control, and are profitable. Data on the Incofin portfolio is given in the table opposite.

Statistics on the Incofin cvso portfolio

Delinquent loans as % of loan portfolio Operating costs as % of loan portfolio Growth in number of clients Return on Equity (ROE) excluding donations Sum of the MFIs total loan portfolios Average loan Number of active MFIs

Without prejudice to the specific valuation rules mentioned hereinafter, the valuation rules that apply are those that were established pursuant to the provisions of the Royal Decree of January 30th, 2001 in implementation of the Companies Act, more particularly Book II, title I, chapter II relating to valuation rules. Unless stated otherwise, the article numbers refer to the

5.90% 26% 111% 12% 951,820,532 EUR 868,3 EUR** 27

Small institutions (portfolio < EUR 5 million)


Medium sized institutions (portfolio EUR 5-20 million)


Large institutions (portfolio > EUR 20 million)


Small outreach (with < 10,000 clients)


Medium sized outreach (with 10,000 to 20,000 clients) Large outreach (with > 20,000 clients)

7 15

Loans < EUR 500: average Loans EUR 500 - EUR 1.000: average

Valuation rules


Financial indicators

6 12

Loans EUR 1,000 - EUR 2,000: average


Loans > EUR 2,000: average


Total number of MFI clients Percentage of women

1,519,192 76%

* ACEP Burkina Faso and TenGer Financial group (Mongolia) are not included in this table. ACEP Burkina Faso is a start-up institution that will only become operational in 2011. TenGer is a holding company. ** Acorde (Costa Rica) is not included in this figure because the institution also provides loans to small and micro enterprises. The average loan is therefore much higher than with other MFIs.

Key figures of Incofin cvso

relevant articles in the above-mentioned Royal Decree of January 30th, 2001.

Valuation of assets Without prejudice to the specific valuation rules mentioned hereinafter, each asset item is valued separately at its acquisition cost and included in the balance sheet at that amount, after deduction of the depreciation and reductions in value on the individual asset items in question (art. 35, first paragraph).

Investments per instrument

equity 32%


Intangible fixed assets are valued at their acquisition value, exclusive of additional costs. They are amortized over the assets’ economic lifetime. Software is amortized over 5 years.

loan 68%


Tangible assets are valued at their acquisition cost, exclusive of additional costs. They are depreciated over the assets’ economic lifetime, being: »»office technology 5 years »»computers 3 years »» furniture 10 years PARTICIPATIONS AND SHARES

Participations and shares are valued at their acquisition cost, exclusive of additional costs (art. 41, §2). Write-downs are applied in case of sustained loss of value, as justified by the status, the profitability, or the prospects of

Investments per currency OTHER 16%

dram 6% sol 8% USD 50%

boliviano 10%

eur 10%

• 71

72 •

INCOFIN annual report 2010

the company whose participations or shares are held (art. 66 §2 - Royal Decree January 30th, 2001). The participations and shares that are listed under financial fixed assets are not revalued (art. 57, §1). Once a participation has been written down, this particular participation will be revalued back up to no more than the original acquisition value, if the status, the profitability or the prospects of the company justify this (in the judgment of the Board of Directors). FIXED-INTEREST SECURITIES

Fixed-interest securities are valued at their acquisition cost. The difference between the acquisition value and the redemption value is transferred to the income statement on a straight-line basis pro rata temporis. AMOUNTS RECEIVABLE

Without prejudice to the provisions in articles 67, §2, 68 and 73, accounts receivable are posted at their nominal value (art. 67, §1) at balance date.

of 1% is applied annually to the outstanding investment portfolio), weighted by the ECA risk scores published per country. Said global depreciation is charged in accordance with article 47 of the RD on the Companies Act, given the similar technical and legal characteristics of these claims. The level of this write-down can be adjusted on the basis of historical credit loss data. INVESTMENTS AND CASH AND CASH EQUIVALENTS

These are entered at their acquisition value or at market value if the latter is lower at balance date (art. 74).

Valuation of liabilities PROVISIONS FOR RISKS AND COSTS

Provisions are set up to cover clearly specified types of losses or costs that are probable or definite at balance date, but the amount of which it is not possible to assess precisely (art. 50 - Royal Decree January 30th, 2001). AMOUNTS PAYABLE AFTER ONE YEAR AND WITHIN ONE YEAR


Without prejudice to the provisions in articles 67, §2, and 73, accounts receivable are posted at their nominal value (art. 67, §1). As per article 68, write-downs are applied where repayment of all or part of the receivable on the repayment date is uncertain. To make allowance for the special credit risk that arises from extending credit to high-risk countries with unstable economic and political climates, global depreciation

Without prejudice to the other provisions in articles 77, 67, §2 and 73, amounts payable are posted at their nominal value (art. 67, §1). TRANSLATION OF FOREIGN CURRENCIES (ART. 34)

Amounts payable and amounts receivable in foreign currency are translated at balance date at the closing rate at balance date or at the last available rate before balance date. The translation difference is recognized in the income statement.

Key figures of Incofin cvso






(IN EUR ‘000)



10,000 200 8,000 150 6,000 100




0 2010











0 1997

Evolution of total assets and portfolio

















0 2010





0 2005

At the end of 2010 the total assets of Incofin amounted to EUR 30,207,341, an increase of 37% over the previous year. Incofin’s equity at 31 December 2010 amounted to EUR 17,080,239, up by no less than EUR 4,077,138 (+ 31%) on the previous year. 61% of this increase of EUR 2,376,583 (to EUR 14,158,072) is due to the capital increase and the associated issue premiums. In addition, equity is also significantly (+ 36%) enhanced by the EUR 1,485,300 increase in retained profit to EUR 1,628,748 at year end. This increase in equity is largely due to the sale and merger agreement which was concluded for the participation in Confianza, Peru. The Board of Directors proposes to offer Incofin shareholders a capital remuneration of 2.5% on their invested capital for 2010. This is 50 basis points higher than for 2009. Those partners who have injected capital during the year will be remunerated pro rata temporis in accordance with Article 35 of the Articles of Association. Debt in the form of short and long term loans increased by EUR 3,462,500 in 2010. Existing loans amounting to EUR 1,237,500 were repaid and new loans were taken out with VDK Spaarbank, KBC, Dexia and Hefboom in a total of EUR 4.7 million. This borrowing fits with Incofin’s strategy of increasing the company’s total available funds by attracting debt capital. The volume of loans may, however, never exceed




evolution of capital and shareholders incofin cvso



• 73

INCOFIN annual report 2010

impact portfolio 50,000







(IN EUR ‘000 )







(IN EUR ‘000)

60 40

10,000 20 0 2010







0 2003

74 •

142 transactions executed with 47 partners since 2003 More than EUR 43.6 million invested in the period 2003-2010, of which 23% in local currency

the amount of Incofin’s equity. At the end of 2010, Incofin had EUR 11,952,500 of loans effectively outstanding, equal to 70% of its equity. It also had undrawn credit lines totalling EUR 3,047,500 with KBC, VDK and Dexia at 31/12/2010. Within the limits set by the Board of Directors these may be drawn down up to 100% of the volume of the shareholders’ equity. On the assets side of the balance sheet, the gross investment portfolio (before general depreciation and specific write-downs) amounted at year end to EUR 25,090,112; that is EUR 7,976,353 of equity investments and EUR 17,113,759 of loans. Overall the investment portfolio grew by 20% in 2010. This net increase took place entirely in the loan portfolio through new investments in Nigeria, Costa Rica, Armenia, Mexico, Ecuador and Mongolia; and a further strengthening of MFIs that were already in the portfolio. Equity investments decreased by a net EUR 370,947. This is entirely due to the sale of 50% of the Confianza shares that stood in the Incofin cvso portfolio at EUR 1,846,788. Without this sale, the value of the portfolio of participations would have risen by EUR 552,447. This increase is primarily due to increases in existing participations in Bolivia, Argentina and Peru, and to the payment of stock dividends amounting to EUR 475,342. The remaining growth in the investment portfolio is explained by the conversion of preference shares into ordinary shares at Proempresa in Peru, which was accompanied by an increase in the carrying value of this investment. The net investment portfolio amounted at the end of the financial year to

Key figures of Incofin cvso

Book value portfolio per country 4.5





(in mio EUR)

4.0 3.5


3.0 10.0 2.5 8.0 2.0 6.0




Book value portfolio per currency 14,000











































0.0 PERU





EUR 24,222,090, after the following adjustments: 1. The Fundación Nieborowski, which is structured as an NGO, did not recover from the crisis that manifested itself in Nicaragua in 2009 following the creation of the Movimiento de No Pago (non-payment movement) which knew it could rely on the support of Nicaragua’s political leaders. The loan to the Fundación Nieborowski was therefore written off in full in Incofin’s books by means of a specific write-down of EUR 197,145. This additional writedown was largely offset by the EUR 181,807 compensation paid out on this file by Delcredere (Belgian national foreign investment insurance company). 2. In the aftermath of the same crisis the Nicaraguan MFI Prestanic also struggled in the course of 2010. As a precautionary measure, a specific write-down of EUR 164,334, equal to 50% of the principal amount, was included in the accounts at year end. Delcredere also guarantees the remaining 50% of this transaction. Nevertheless, the MFI continues to pay down its loan, and as early as February 2011 a part of the writtendown balance was recovered. The fund manager is closely monitoring this file with a view to limiting the damage. 3. After consultation with the CBFA, the general provisions for possible risks in the portfolio are no longer recorded as a provision on the liabili-

• 75

76 โ€ข

INCOFIN annual report 2010

ties side of the balance sheet, but as depreciation on assets. In the course of 2010, EUR 155,446 was added to this general depreciation account. 4. On the other hand, the specific writedowns related to: a. the investment in Prestanic, in an amount of EUR 164,334; b. the additional specific writedown in respect of Fundaciรณn Nieborowski, to cover the amount of EUR 15,338 not recovered from Delcredere were both imputed in 2010 directly to the general depreciation account and


therefore do not affect the results for 2010. This has the effect of reducing the outstanding balance of general depreciation from EUR 219,139 at the end of 2009 to EUR 194,914 at the end of 2010. 5. For the participating interest in the MFI FIE Gran Poder, it was decided to reverse the separate write-down of EUR 88,021 which had been charged in 2009 owing to the devaluation of the Argentinian peso. This writedown is no longer justified because the intrinsic value of this participation increased in the course of 2010



Fixed assets




Financial fixed assets



Gross equity investments





Value decrease equity investments current assets V.




Receivables after 1 year



Gross loan portfolio



Specific depreciation loans



General depreciation





Receivables within 1 year Trade receivables Gross loan portfolio





Specific depreciation loans Taxes & VAT Other receivables VIII.

Longterm investments


Cash and banks


Accrued income and deferred charges










Deferred charges



Accrued interests







Other accrued income Total aSSETS

-164,334 61,078

Key figures of Incofin cvso

to well above its historical cost in Incofin’s books. 6. For Incofin’s participing interest in ACME (Haiti), a specific writedown of EUR 69,305 was recorded at year end. Initially, this write-down amounted to EUR 300,000, given the enormous damage following the earthquake in January 2010, but the institution was able to considerably improve its equity position towards year end. At year end, the investment portfolio represented 80% of the assets. Cash and short-term investments amounted to EUR



3.2 million, corresponding to 11% of the Incofin balance sheet total. The balance consists of a receivable of EUR 2,421,155 following the sale of 50% of the Confianza shares, deferrals and accruals (primarily deferred interest of EUR 264,804), and other recoverable taxes and VAT. As off-balance sheet obligations of Incofin at the end of 2010 we mention the forward transactions and Cross Currency Interest Rate Swaps contracted with KBC Bank and MFX Solutions to hedge exchange rate risks for the outstanding loans to MFIs. These serve to cover all non-euro interest and capital flows for loans issued by Incofin










Share premium









Legal reserves Other unavailable reserves



Accumulated P&L carried forward







Debt payable after 1 year



Existing debt



Debt payable within 1 year



Total short term senior debt



Total trade debt



Total taxes & social debt







Dividends payable Total other short term debt X.

Accrued charges and deferred charges Accrued charges







Accrued interest charges



Deferred income






• 77

78 •

INCOFIN annual report 2010

in U.S. dollars, Mexican pesos, Armenian drams, Costa Rican colons, Indonesian rupiahs and Nigerian naira. At end 2010 Incofin had exchange rate hedging products outstanding in a total notional volume of EUR 15,529,136, at the hedging price. The volume of hedged loans to MFIs in exotic currencies rose significantly in 2010 and now stands at 31% of the hedged loans. The remaining 69% consists of USD loans to MFIs.

EXPLANATORY NOTES TO THE INCOFIN 2010 PROFIT AND LOSS ACCOUNT Incofin ended the year with a net profit after tax of EUR 1,893,988. This is almost three times the result of last year and includes - as did last year’s figure - a general depreciation charge in an amount of 1% of the gross investment portfolio in the form of receivables weighted on the basis of ECA risk scoring. This general depreciation account has been set up to cover possible future defaults and currency fluctuations. The general depreciation charged in 2010 amounts to EUR 155,446. Specific writeoffs were also recorded for Prestanic and Fundación Nieborowski, both Nicaraguan MFIs as explained above, in an amount of EUR 361,478. Of this, EUR 179,672 was imputed against the general depreciation account, with the balance compensated by the insurers. The total income of Incofin (operating income, financial income and extraordinary income) rose by 46% in 2010 to EUR 5,298,129. 9% of Incofin’s income in 2010 consists of operating income, mainly

compensation for losses, 57% of financial income, and 34% of extraordinary income. The discontinuation of the fund advisory activities has the effect of increasing the relative size of financial income in the operation of Incofin cvso. The large amount of extraordinary income relates primarily to the sale of half of the Confianza shares. These were sold by Incofin to the Peruvian MFI Caja Rural Nuestra Gente, which has the Spanish Fundación BBVA Para las Microfinanzas as a promoter. For the second half of the investment in Confianza, Incofin will, after approval by the Peruvian banking authorities, receive shares in the merged MFI Banconfianza, arising from the merger of the MFI Caja Rural Nuestra Gente and Confianza. The impact of this transaction is also very important at the local level since Banconfianza will offer its services to 400,000 customers through 150 branches with 2,000 employees. Also, the presence of a representative from the grouped Incofin-related investors on the Board of Directors of the new institution means that the emphasis on social policy will continue at Banconfianza. Total charges (operating charges, financial charges, extraordinary charges and taxes) amounted to EUR 3,404,141 in 2010. These charges consisted 47% of operating charges (including the compensation of the fund manager, the cost of Delcredere insurance, the general depreciation charge and specific write-downs, and withholding tax on the capital gain following the Confianza sale), 42% of financial charges and 11% of extraordinary charges related to

Key figures of Incofin cvso

Profit & Loss statement in eur



Operational income








Other income



Operational charges






Office costs



Transport and travelling



Fees, management expenses, translations and other services






Other operating expenses (advertising, memberships, events,...)





Services and other goods


Remuneration, social security & pensions


Depreciation, amounts written off & provisions


Value decreases on debtors


Provisions for commercial risk


Other operating expenses (registration fees, legal formalities,…)

Operational result

Financial income Income portfolio Income Belgian investments Other financial income (positive exchange differences,…) Financial charges





0 24,675














Charges on senior debt



Other financial charges (negative exchange differences, swap charges,…)





Extraordinary income



Extraordinary charges







Financial result

Extraordinary result

Result before taxes Taxes Result after taxes





• 79

80 •

INCOFIN annual report 2010

the specific write-down on the Haitian MFI ACME (EUR 300,000) and taxes related to non-recoverable withholding tax on interest received from abroad. In the profit and loss account the negative currency losses are largely offset by the positive currency gains. The previously mentioned off-balance sheet liabilities in the form of forward transactions (forward foreign currency sales and swaps) serve to hedge the exchange rate risks on the outstanding loans to MFIs. The remaining costs are primarily bank charges, swap costs and the revaluation of cash on bank accounts at closing date. The profit for the financial year is appropriated as follows:

1. Profit to be appropriated Profit of the financial year to be appropriated Profit carried forward from previous financial year

2. Transfers to capital and reserves Transfer to legal reserves Transfer to unavailable reserves 3. P&L to be carried forward Profit to be carried forward 4. Distribution of profit Dividends

€ 2,037,436 € 1,893,988 € 143,448

€ 94,690 € 94,690 €0 € 1,628,748 € 1,628,748 € 313,998 € 313,998

incofin BelgiUM



Sneeuwbeslaan 20 2610 Antwerpen T: +32 (0)3 829 25 36 F: +32 (0)3 740 78 28 E-mail:

Incofin Americas SaS Carrera 14 No.93B - 45 Oficina 202 Bogotá T: +57 742 59 33 E-mail:

India Representative office Chennai, Tamil Nadu T: +91 9940658276 E-mail:


Concept photos team Antwerp: Sven Everaert (; microfinance institution Kompanion, Benjamin Struelens, Ellen Wouters printing


Incofin Annual Report 2010  

Incofin Annual Report 2010