Oikocredit’s latest round of microfinance investments has included several loans to microcredit organizations in Eastern Europe. Founded in 1975, Oikocredit is one of the larger microfinance investment funds, reporting total assets of $304 million as of year-end of 2005. $126 million of this is allocated to Microfinance Investments.
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Oikocredit Invests Nearly $3 Million in 5 Central and South American Microfinance Institutions (MFIs): Loans Given to UNCREFUM, Pablo Munoz Vega, Kullki Wasi, Intihuaca, and ADEA
In addition to its recent $500,000 loan to CEPRODEL in Nicaragua, private investor fund Oikocredit committed close to USD $3 million to MFIs in Central and South America. None of these 5 MFIs report to the MIX Market, the microfinance information clearinghouse. Oikocredit is an international co-operative society established in 1975 under Dutch law. It reported fund assets of $304 million and assets of $126 million allocated to microfinance investments at the end of 2005. According to the MicroCapital ROI Quicklist, Oikocredit has a return on investment of 2%. Oikocredit’s active portfolio of microfinance investments can be found here.
National Investment Bank of Ghana Receives $2.56 Million Microfinance Investment Loan from Oikocredit
Oikocredit recently extended a six year, EUR 2 million (US$ 2.56 million) loan to Ghana’s National Investment Bank (NIB). Established in 1963, NIB is involved in both development and commercial banking. According to their 2005 Financial Highlights, the Bank had $210 million in total assets, with $132 million in gross loans.
Oikocredit Microcredit Investments Extend to Eastern Europe; MI-BOSPO Receives $1.28 Million Loan
MI-BOSPO of Bosnia & Herzegovina, received a EUR 1 million (US$1.28 million) loan repayable in 5 years from Oikocredit. Founded in 1996, MI-BOSPO is a microcredit organization which aims at providing financial services to women entrepreneurs. According to MIX Market, year-end 2004 figures indicated a $9.4 million gross loan portfolio made up of 9,206 active borrowers. Total assets were $11.4 million. With $4.3 million in total equity, the return was 17.83% and debt to equity ratio was 164.07%.
Oikocredit Loans $500,000 to CEPRODEL for Microfinance Investment in Nicaragua
Private investor fund Oikocredit loaned $500,000 repayable in 5 years to the Centro de Promocion del Desarrollo Local (CEPRODEL), a Nicaraguan non profit established in 1991.
Continue reading “Oikocredit Loans $500,000 to CEPRODEL for Microfinance Investment in Nicaragua”
Oikocredit Microfinance Investments Provide Further Support in Uganda with $558,000 Loan to Feed the Children
The loan received from Oikocredit was for 1 billion Ugandan Shillings (UGX), equivalent to about $558,000. It is the latest of several microcredit investments made recently by Oikocredit in Uganda (see Microcapital Blog Friday 6/9/06 and Thursday 6/8/06 for information on other transactions).
More Microfinance Investing in Uganda by Oikocredit: $279,350 to Emesco Development Foundation
Oikocredit granted a five year loan for 500 million Ugandan Shillings (UGX), or $279,350, to the Emesco Development Foundation in Uganda. Oikocredit is one of the larger microfinance investment funds with 467 projects and assets totaling US$304 million at the end of 2005. According to the MIX Market, $126 million of this is allocated to Microfinance Investments.
Oikocredit grants $335,220 loan to the Microenterprise Development Network in Uganda
The Microenterprise Development Network, or MED-net, is an initiative by World Vision. A Christian relief and development organization, World Vision had $301 million in total assets at year end 2005, as reported in the 2005 Financial Statements. According to the MED-net portfolio, World Vision’s Microenterprise Development program had 390,047 active clients in 46 countries, with $134,344,795 in loans outstanding at year end 2005. In Uganda, this program provides both community and individual loans to over 15,000 clients.
Oikocredit Makes $1.58 Million Debt Investment in Peruvian Microfinance Institution (MFI) Edpyme Proempresa
Private investor fund Oikocredit loaned 5 million Peruvian Nuevo sol (USD $1.58 million) repayable in 5 years to MFI Edpyme Proempresa.
Microfinance Investment Fund, Oikocredit, Spans the Globe with Latest Round of Debt Financings.
Oikocredit, one of the larger microfinance investment funds with assets totaling US$304,662,000 at the end of 2004, recently completed sixteen new debt deals that touched various countries around the world. Based in the Netherlands, Oikocredit is a socially responsible investment fund that leverages a number of regional offices to channel loans to development projects in Latin America, Asia, Africa, and Central and Eastern Europe.
Continue reading “Microfinance Investment Fund, Oikocredit, Spans the Globe with Latest Round of Debt Financings.”
The Swiss ResponsAbility Fund, Oikocredit, and MicroVest Make $5.8 Million Microfinance Investment in Fund Opportunity Russia
Fund Opportunity Russia (FORA), “the largest non-bank microfinance organization in Russia,” recently received a $2 million loan from the Swiss ResponsAbility Fund, $1.8 million from Netherlands based Oikocredit, and $2 million from U.S. MicroVest. FORA’s total assets were $16.39 million as of December 2004 and it was founded by Opportunity International Network, a US non-profit “network.”
FORA’s second investor, Oikocredit, is an investment fund seeking “social investment opportunities in the South”. Oikocredit’s assets were at $304.66 million at the beginning of 2005, and it provides loans at a minimum of $50,000 and a maximum of $5 million to microfinance institutions (MFIs) for a maximum of ten years. Its “near market rates are equal to LIBOR plus partial cost plus partial risk.”
The third investor into FORA, MicroVest, is an investment firm that provides debt and equity capital to MFIs. With total fund assets at $14.4 million as of July 2005, MicroVest’s loans go from $500,000 to $3 million for a maximum of 30 years. No guarantees are required and its rate terms are “LIBOR plus partial cost plus partial risk, or LIBOR plus full cost plus full risk.”
Additional Resources
1) Consultative Group to Assist the Poor (CGAP): “Microfinance Capital Markets Update” is the best source for monthly updates on debt and equity deals in microfinance.
2) MIX Market: “FORA: Financial Data.”
3) MIX Market: “FORA: General Information.”
4) MIX Market: “ResponsAbility Fund: Fund Description.”
5) MIX Market: “ResponsAbility Fund: Fund Instruments.”
6) “Oikocredit: About Us.”
7) MIX Market: “Oikocredit: Fund Instruments.”
8) MIX Market: “Oikocredit: Fund Description.”
9) MIX Market: “MicroVest I: Fund Description.”
10) MIX Market: “MicroVest I: Fund Instruments.”
11) MicroCapital Blog: “Microfinance Networks (wholesale transnational): Defined and Listed.”
12) “Opportunity International Network: What We Do.”
13) “2004 Annual Report: Opportunity International.”
14) “ResponsAbility: Founding Institutions.”
SPECIAL REPORT: The Business Case for Education Finance #EMW2023
Many families in low- and middle-income countries send their kids to low-cost private schools because the government is not meeting the need. However, many of these schools are not registered as businesses and don’t keep good records, so it is hard for them to borrow from banks to improve their facilities. Meanwhile, about one in five school-aged children – 260 million worldwide – are not in school.
Varthana is a lender in India that specializes helping schools expand. Its loans are often in the range of USD 20,000 to USD 100,000. The firm has developed a track record and so now is able to
MICROCAPITAL BRIEF: Baobab+, TradeLenda Partner on Solar Energy Solutions for SMEs in Nigeria
Baobab+, a French energy and technology company active in six African countries, recently partnered with TradeLenda, a Nigerian financial services company serving small and medium-sized enterprises (SMEs), to expand lending to SMEs to buy solar generators, freezers and refrigerators. SMEs will be able to
MICROCAPITAL BRIEF: IDB Invest, Sura Investments Channeling $25m in Loans to SMEs, Mid-market Firms in Colombia
Colombia’s Sura Investments recently raised COP 100 billion (USD 25 million) for its Sura Private Debt Fund from IDB Invest, a member of the Inter-American Development Bank (IDB) Group. The fund was launched in 2020 with an initial volume of COP 38 billion (USD 9.5 million). The goal is to provide local-currency funding on longer terms than are otherwise available to small and medium-sized enterprises (SMEs)
MICROCAPITAL BRIEF: First City Monument Bank of Nigeria Offers Asset Financing Starting at $600
First City Monument Bank (FCMB) of Nigeria has begun offering loans of NGN 500,000 (USD 600) to NGN 3 million (USD 3,600) with terms of one year to four years for businesses to finance purchases of equipment and machinery. FCMB reports that it also may grant customers – in certain circumstances –
MICROCAPITAL BRIEF: Investors Buy $173m in Equity in Fusion Microfinance of India; IPO Allows Exits by Early Shareholders, Promoters
In the run-up to the recent IPO by India’s Fusion Microfinance, 17 investors paid approximately INR 3.3 billion (USD 40 million) for equity stakes in the microlender. The actual IPO was oversubscribed by a factor of two, as Fusion raised INR 6 billion (USD 72 million) in fresh cash, and early investors and promotors sold shares for a total of INR 5 billion (USD 61 million). Among those selling their entire holdings in the company was
SPECIAL REPORT: Chamroeun Microfinance Scaling Up to Fund SMEs Supplying Piped Water in Cambodia
Yannick Milev of Cambodia’s Chamroeun Microfinance presented today at European Microfinance Week on the lender’s expansion into providing loans as large as USD 250,000 to private companies that supply piped water to households in Cambodia. In rural parts of the country, the government issues monopolies to private water providers to serve given areas. Approximately 400 companies are licensed to receive these monopolies.
In designing the loan product, Chamroeun employed a technical assistance grant of
MICROCAPITAL BRIEF: SEWA Affiliate Sitara Raises $20m in Equity from Nordic Microfinance Initiative, Women’s World Banking, Ongoing Shareholders to Improve Housing Conditions for Women in India
SEWA Grih Lin, an Indian affordable housing finance company also known as Sitara, recently raised USD 20 million in equity, including USD 8 million from the Norway-based Nordic Microfinance Initiative (NMI). Sitara sourced the remainder in unspecified portions from