Overview:
The ALTERNATIVE Securitization Fund was established in Luxembourg and began its operations in 2015 by the Mikro Kapital Group S.A. The company manages a variety of financial products and services intended for powerless populations in developing regions. The fund issues a series of bonds backed by the investments of Mikro Kapital. Within the fund, four series of bonds are offered to investors for periods ranging from 11 to 48 months, in three currencies (EUR, USD, CHF), with a coupon that varies according to the currency and the length of the investment.

Strategy:
The capital raised from the bonds will be used to grant loans to the subsidiaries of Mikro Kapital, located in Eastern Europe, Italy, Hong Kong and East Asia for their local activities. The subsidiaries invest in micro-financing the following entities: small-scale financing for individual entrepreneurs; financing for micro, small, and medium-sized organizations; and financing for startups and leasing companies (including financial and operational leasing). The fund will also invest through partnerships with banks, collective investment schemes, securitization tools, microfinance institutions, insurance companies, and credit companies. The loan repayments by the companies serve as a source for repaying the bond investors.