Welcome to SEF International UCO’s partner profile. We are happy we can extend our services to Armenian entrepreneurs to fund their small business and improve their lives through our partnership with Kiva. Thanks to the funded loans, jobs are created and sustained, many families’, especially children's lives are improved. 

About us

SEF International was founded by World Vision International in 1997 and since 2009 has been under VisionFund, a microfinance subsidiary of World Vision International. First licensed MFI in Armenia, SEF International is regulated by the Central Bank of Republic of Armenia (CBA) as of 2003.

SEF International is a socially responsible organisation. The organisation has established a set of operating targets separated into social performance requirements, financial sustainability goals, and risk restrictions.

Achievements in performance, processes and culture were reflected in CGAP Financial Transparency two Merit Awards for 2005 and 2006. In September 2006 SEF, received BB+ rate from a CGAP-recognised independent rating agency. In subsequent year the rate was increased to BBB- . In 2010 SEF has received BBB- stable rating, and its first social rating BBB.

Currently SEF is operating through two branches in Yerevan, branch offices in Gyumri, Sisian and Kapan, and representative offices in Talin, Stepanavan, Goris and Meghri. Soon two new branches will be opening in Artashat and Armavir. The majority of SEF clients are located in the poorest rural communities. SEF has been offering a variety of loan products to farmers, urban businesses and consumers focused on improving the quality of life for children.

Our Vision

SEF shares its founder’s vision: Our vision for every child, Life in all its fullness.

Our Mission

Extend business development and financial services to emerging entrepreneurs in search of productive opportunities to support families and communities striving for decent life for children in Armenia.

1.Performance Targets

As a part of a large network and as microfinance institution we follow two sets of targets: financial sustainability and social performance. In addition, as a lender we are also limited by a number of risk factors. Our performance matrix represents a trade-off between three groups of indicators:

A.Social Performance:

We have set the following indicators as primary targets of our social performance:

•Number of female clients as percentage of total clients: 48%

•Geographic reach to World Vision Area Development Programs: 60%

•Number of children impacted: not less than number of loans extended.

Further, as a measure to target the low income population, we plan to keep the average loan size well below USD $1,500.

B.Financial Sustainability

C.Risk Factors

In our operations we encounter a number of risks, of which most critical are operational risks, market risks and credit risk.

2.Performance Drivers

The growth in demand for micro-credit will reappear as global economy re-emerges from crisis. A paradigm shift for SEF will be to focus on developmental as opposed to survivalist lending. 

Funding Risk

The ability to access funding to finance loan portfolio maintenance and growth is a key to further development of the institution. More security in this area could be obtained through diversification of funding sources. SEF will work with international microfinance lenders and to attract more resources to ensure adequate supply of liquidity and in timely manner. Primary focus in this process will be put on building long-term partnership with reliable lenders willing to support SEF in its social mission.

Our Team

The motivated team of more than 100 members are experienced professionals.  SEF’s management continuosly promotes and contributes to the development of its employees. 

Facts

From a social impact perspective SEF has been delivering visible results throughout its history. In total SEF has extended more than $49 million in loans to more than 43 thousand clients, created and sustained more than 35 thousand jobs and affected around 74 thousand children.

September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 

Kiva's new risk rating system, which now includes half stars, has enabled us to display SEF International's risk rating with a higher level of granularity. As a result, SEF International's risk rating will now be displayed as 3.5 stars instead of 3 stars. 

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

SEF International has been informed of the change in the display of their rating on Kiva's website.