The Overseas Private Investment Corporation (OPIC), a US government agency that supports private sector development, has approved a USD 45 million loan to Habitat for Humanity International (HFHI), a nonprofit, US-based Christian organization that builds homes for poor people, to promote and expand housing microfinance lending. HFHI’s MicroBuild Fund I, an investment subsidiary that is overseen by Dutch investment manager Triple Jump, will be responsible for on-lending the funds to MFIs, which in turn will disburse microloans to poor families for home renovations, construction and maintenance.
Jonathan Reckford, CEO of HFHI, says the organization is looking “forward to expanding our efforts with microfinance institutions so that together we can create even more opportunities for low-income families to live in decent housing.”
By Rohan Trivedi, Research Associate
About The Overseas Private Investment Corporation (OPIC):
The Overseas Private Investment Corporation (OPIC) is an agency of the US government that was established in 1971 as a development finance institution. OPIC works with private-sector firms in the US to identify opportunities in emerging markets and create an enabling environment for private enterprise in developing countries. OPIC provides financing through direct loans as well as guarantees, political risk insurance and investment funds. As of September 30, 2010, OPIC reports total assets of USD 7 billion deployed in approximately 150 countries.
About Habitat for Humanity International:
Habitat for Humanity is a nonprofit, ecumenical Christian ministry whose mission is to provide poor people with clean, safe and affordable places to live. Since its inception in 1976, Habitat for Humanity has engaged the services of homeowners and volunteers to build houses under the supervision of trained builders. In the United States, the organization offers no-interest mortgage loans directly to low-income families, and outside of the United States it partners with microfinance institutions to distribute and service loans. Habitat for Humanity operates in all fifty US states and six continents. As of June 30, 2010, Habitat for Humanity reported total net assets of USD 274 million.
About Triple Jump:
Triple Jump was founded in 2006 to support the expansion of microfinance institutions (MFIs) in various stages of development by providing capital and advisory services. Triple Jump was established by the NOTS Foundation, a Dutch development organization; Oxfam Novib, a Dutch organization for international cooperation and development; and ASN Bank, a “sustainability-driven” Dutch bank. Its shares are divided among these organizations and Triple Jump’s management team. Triple Jump is comprised of Triple Jump Fund Management (TJFM) and Triple Jump Advisory Services (TJAS). TJFM provides its clients with four investment options: hard and local currency loans, equity, guarantees and subordinated loans. TJAS is an independent foundation that provides consulting services and technical assistance to tier-3 and tier-4 MFIs. As of March 31, 2011, Triple Jump manages five microfinance investment funds, with total assets approximately equivalent to USD 300 million. Its investments span 132 MFIs in 52 emerging markets in Latin America, Eastern Europe, Africa and Asia.
Sources and Additional Resources:
[1] OPIC Press Release: “OPIC Board Approves $45 Million to Support Housing Microfinance Lending by Habitat for Humanity”, http://www.opic.gov/news/press-releases/2009/pr070111b
MicroCapital.org story, June 10, 2011: “MICROCAPITAL BRIEF: Habitat for Humanity, Microfinance Centre (MFC) for Central and Eastern Europe and the New Independent States Establish ‘Shelter Innovation Center’ to Address Housing Needs in Europe, Central Asia”, https://www.microcapital.org/microcapital-brief-habitat-for-humanity-microfinance-centre-mfc-for-central-and-eastern-europe-and-the-new-independent-states-establish-“shelter-innovation-center”-to-address-housi/
MicroCapital.org story, March 30, 2011: “MICROCAPITAL BRIEF: Habitat for Humanity, Ask Group Launch MicroBuild India Fund for Home Improvement Loans”, https://www.microcapital.org/microcapital-brief-habitat-for-humanity-ask-group-launch-microbuild-india-fund-for-home-improvement-loans/
MicroCapital Universe Profile: Overseas Private Investment Corporation (OPIC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
MicroCapital Universe Profile: United States Agency for International Development (USAID), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+States+Agency+for+International+Development+%28USAID%29
MicroCapital Universe Profile: Habitat for Humanity International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Habitat+for+Humanity+International
MicroCapital Universe Profile: Triple Jump, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triple+Jump
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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