Project detail - OIKOCREDIT, ECUMENICAL DEVELOPMENT

OIKOCREDIT, ECUMENICAL DEVELOPMENT

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Who is our client

For over two years, FMO has been discussing opportunities to cooperate with one of the largest privately funded social investment vehicles in the world: the Dutch cooperative investment fund Oikocredit (OC). With a focus on Tier II/III microfinance institutions (MFIs) and (rural) SMEs in low-income countries (LICs), OC's activities are highly complementary to FMO's own projects.

Funding objective

The investment is a EUR 10 million debt fund, in which OC and FMO (through MASSIF) will each invest EUR 5 million. The fund life is 10 years, with an investment period of 5 years. A strategic partnership is envisaged as FMO and OC's combined microfinance portfolio is the largest in the world in volume as well as in its number of clients.

Why we fund this project

FMO enables OC to provide scarce funding to an underserviced niche, namely Tier II/III MFIs and (rural) SMEs in mainly sub-Saharan Africa. FMO is also considering providing capacity development support to assist OC's borrowers in areas such as product development, marketing and HR policies. This complementary partnership allows FMO to support business activities which we cannot support directly ourselves.

Country
Global
Sector
Financial Institutions
Signing date
6/20/2012
Total FMO financing
EUR 5.00 MLN
Fund
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B