Close alignment between Triodos Investment Management and KMF LLC results in Triodos Microfinance Fund and Triodos Fair Share Fund taking an equity share in the largest microfinance institution in Kazakstan, KMF LLC.
Long-term relationship
In early 2015, the 13.7% equity stake was announced. Triodos Investment Management has had a long-term debt investment relationship with KMF LLC since 1998. Hivos-Triodos Fund was one of the first lenders that provided funding to KMF LLC (formally named Kazakhstan Loan Fund) .
Taco Lens, Senior Investment Officer for Triodos Investment Management, “Kazakhstan has a developing economy, especially in the field of inclusive finance. KMF LLC is socially and sustainably aligned with Triodos Investment Management and as part of its development process, it has the opportunity to become an inclusive finance organisation by offering a broader range of products and services to its clients. By participating in the governance of KMF, Triodos Investment Management can bring added value as they navigate their transformative stage.”
Well-stablished MFI
KMF LLC is the largest microfinance organization (MFI) in Kazakhstan, with a wide regional network of 74 subdivisions and offices and 16 branches, and has a net loan portfolio of USD 118 million and over 98,000 clients. KMF LLC’s strategic focus is on the rural and underserved regions, with a predominately female clientele (70%) and clients coming from rural areas (74%). The organisation also provides financial literacy courses in rural areas and has won international and local awards for client protection.
The capital increase provided by Triodos Microfinance Fund and Triodos Fair Share Fund, in cooperation with responsAbility Investments, will support sustainable growth of this microcredit MFI.