Oikocredit, a Dutch investor in microfinance institutions (MFIs), has paid INR 30 million (USD 675,000) for a 10-percent stake in Kerala-based ESAF (Evangelical Social Action Forum) Microfinance and Investment Private Limited (ESAF). The investment was made through a wholly-owned Indian subsidiary of Oikocredit, Manaveeya Holdings and Investments.
In June 2009, ESAF raised INR 120 million (USD 2.6 million) by selling a 20 percent stake to Dia Vikas Capital, a wholly-owned subsidiary of Opportunity International Australia, a non-profit organization.
The investment by Oikocredit brings ESAF’s total equity investments to INR 300 million (USD 6.7 million). Its total debt funding is INR 6.3 billion (USD 142 million). ESAF intends to reach out to one million households by 2014. According to the Microfinance Information Exchange (MIX) Market, ESAF reported total assets as of March 31, 2009 of USD 15.0 million, gross loan portfolio of USD 9.1 million and 145,701 active borrowers.
Oikocredit, as of year-end 2009, had EUR 537 million (USD 715 million) in total assets with 790 active investments, of which 543 investments were in MFIs. No financial information specific to Manaveeya Holdings and Investments is available in the public domain.
By: Christine Chang, Research Associate
About ESAF Microfinance and Investment (ESAF):
ESAF (Evangelical Social Action Forum) Microfinance and Investment (ESAF) was established in 1992 and is a regulated non-bank financial institution based in Kerala, India. According to the Microfinance Information Exchange (MIX) Market, ESAF reported total assets as of March 31, 2009, of USD 15.0 million, gross loan portfolio of USD 9.1 million and 145,701 active borrowers. ESAF reported return on assets of 0.77 percent and return on equity of 8.38 percent. ESAF provides clients with the following services: microcredit, microinsurance, health care, homes and infrastructure and retail services.
About Oikocredit:
Oikocredit is a Dutch cooperative investment fund comprised of church groups, social support groups and individual investors. Established in 1975, it works in 70 countries worldwide, investing mainly in microfinance institutions (MFIs), as well as trade cooperatives, fair trade organizations and small and medium-sized enterprises (SMEs) in the developing world. As of year-end 2009 it had EUR 537 million (USD 715 million) in total assets with 790 active investments, of which 543 investments were in MFIs.
About Opportunity International Australia:
Opportunity International Australia is a non-profit organization that uses a business approach with the aim of solving the problem of poverty. It focuses on the expansion of the microfinance sector in India, Indonesia and the Philippines. Opportunity International Australia serves two million people through microfinance and community development programs. The organization is also a fundraising partner of Opportunity International, and it raises and distributes funds from private contributions, government grants and capital markets to expand its microfinance institution partners. Dia Vikas Capital, an India-based, wholly-owned subsidiary of Opportunity International Australia, is a social venture capital fund supporting microfinance and livelihood institutions in India.
Additional Resources:
VCcircle.com: ESAF Microfinance Raises Rs 3Cr From Oikocredit International , April 7, 2010: http://www.vccircle.com/500/news/esaf-microfinance-raises-rs-3cr-from-oikocredit-international
India Microfinance website: ESAF Microfinance sells 10% stake to Oikocredit, March 31, 2010: http://indiamicrofinance.com/blog/microfinance/microfinance-private-equity/esaf-microfinance-sells-10-stake-oikocredit.html
MicroCapital Universe: ESAF Microfinance and Investment (ESAF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ESAF+Microfinance+and+Investment+%28EMFIL%29
MicroCapital Universe: Oikocredit: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oikocredit
MicroCapital Universe: Opportunity International Australia: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International+Australia
MICROCAPITAL STORY: Fund-raising Continues In India – Kerala’s ESAF Microfinance And Investments Raises $2.5 Million Through Sale Of Minority Stake To Opportunity International Australia’s Subsidiary, Dia Vikas Capital, June 25, 2009: https://www.microcapital.org/microcapital-story-fund-raising-continues-in-india-kerala%E2%80%99s-esaf-microfinance-and-investments-raises-usd-25-million-through-sale-of-minority-stake-to-opportunity-international-australias/
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire
- MICROCAPITAL BRIEF: Oikocredit Lends $3.3m to Witti Finances to Support SMEs in Côte d’Ivoire
- MICROCAPITAL BRIEF: Oikocredit Lending $4.9m to Support MSMEs Led by Women in Paraguay Via Ueno App
- MICROCAPITAL BRIEF: RDG Collective Borrows $2m from Oikocredit for Pay-as-you-go Solar Appliances for 12k Low-income Households in Zambia
- MICROCAPITAL BRIEF: Opportunity EduFinance Partners with 7 FSPs to Invest in Education in Africa, India
