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Mikro Kapital

What we do? A fixed income solution.

Lauched in 2008, Mikro Kapital is an asset management company specialized in the use of microfinance techniques for investing in small businesses across emerging areas of the world, especially in Russia and Russian-connected countries, Central and East Asia, and Latin America. Mikro Kapital operates through two SPVs, technically Found Commun de Placement : Mikro Fund and Alternative Fund. The idea behind Mikro Kapital is to finance small businesses in emerging areas of the world at the current rates, gathering funds from European institutional and qualified private investors, through the issue of bonds (EMTNs) in Luxembourg, with an appealing and competitive yield and a short maturity.

What we offer it’s private debt in the form of EMTN bond. Mikro Fund and Alternative Fund differ for the geographical exposure. Portfolio construction is consistent and the same for both of them, they adopt the same due diligence and credit process.

  • Mikro Fund: track record of over 10 years, invests in Russia and Belarus
  • Alternative Fund: track record of 4 years, invest in Moldova, Armenia, Italy, Romania, Tajikistan, Mongolia, Cambodia, Indonesia, Nicaragua, Guatemala, Honduras.

Mission

In the Emerging Markets there is a real need to improve the life trend by reducing the gap with the developed world. Our goal, in the countries in which we have operated during the Group's 10 years of activity, was precisely to support credit worthy SMEs, with a high growth potential and significant social impact, since they are at the base of socio-economic development.

Current Parameters

MIKRO BOND – exposure to Russia and Belarus

  • EUR EMTN: 5% @ 11 months / 7% @ 24 months / 7,5% @ 36 months / 8,5% @ 60 months
  • USD EMTN: 5% @ 11 months / 7% @ 24 months / 7,5% @ 36 months / 8,5% @ 60 months
  • CHF EMTN: 4% @ 11 months / 4,5% @ 24 months / 5% @ 36 months / 5,5% @ 60 months (minimum EUR 1 mln equivalent)
  • GBP and CHF EMTN: upon request (minimum EUR 1 mln equivalent)

ALTERNATIVE BOND – exposure to Moldova, Armenia, Romania, Italy, Tajikistan, Indonesia and Central America

  • EUR EMTN: 7% @ 24 months / 7,5% @ 36 months / 8,5% @ 60 months (minimum EUR 1 mln equivalent)
  • USD EMTN: 7% @ 24 months / 7,5% @ 36 months / 8,5% @ 60 months (minimum EUR 1 mln equivalent)
  • CHF EMTN: 4,5% @ 24 months / 5% @ 36 months / 5,5% @ 60 months (minimum EUR 1 mln equivalent)
  • GBP EMTN: upon request (minimum EUR 1 mln equivalent)

Please contact our sales representative to confirm the above parameteres

Characteristic of our bonds: Risk/Reward analisys

  • The average credit losses, over the past 10 years, have been below 1%
  • All loans are fully collateralized 120/130% of the disbursed loan and all currency risk is hedged.
  • The investor currently enjoys annual interest payments of up to 8.5% (60 months EUR as per August, 2018), depending on maturity and currency. Coupons are set quarterly.
  • Further the capital ratio on a consolidated level is set to a minimum of 10% by management regulation, which is above the requirements set by Basel III for regulated Financial Institutions. This provides a good liquidity buffer to Bondholders.
  • Important to point out is, that all branches are regulated by the Central Banks of the respective countries where they are legally registered and operate and that all of the activities of the subsidiaries are audited and consolidated under the Luxembourg legal entity (Mikro Kapital SA).
  • Low correlation with macro-economic factors due to the distribution over a wide range of industries and geographical areas.