MICROCAPITAL BRIEF: Oikocredit Increases Equity Stake in Bolivian MFI Banco FIE

Oikocredit, a cooperative “social investment” fund based in Amersfoort, the Netherlands, recently increased its equity stake in Banco para el Fomento a las Iniciativas Económicas (Banco FIE), “more than doubling” its investment in the Bolivian microfinance bank. Oikocredit first invested in Banco FIE in 2002 and “further equity increases followed.” The price it paid and the size of its stake remain confidential, although Oikocredit held 6.96 percent of Banco FIE as of December 31, 2015.

Banco FIE offers credit, deposit, insurance and cash transfer services in addition to making equity investments in small and medium-sized enterprises (SMEs), particularly in the agricultural sector. As of 2015, it reports total assets of USD 1.5 billion, a gross loan portfolio of USD 1.2 billion outstanding to 239,000 borrowers, total deposits of USD 1.1 billion and approximately 800,000 depositors. As of 2016, Oikocredit reports total assets of EUR 1.1 billion (USD 1.2 billion), total capital of EUR 941 million (USD 996 million) outstanding to approximately 790 partners in 70 countries.

By Michelle Dold, Research Associate

About Oikocredit

Oikocredit is a Dutch cooperative “social investment” fund comprised of church groups, cooperatives and individual investors. Established in 1975, it works in 70 countries, 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 2016, Oikocredit reports total assets of EUR 1.1 billion (USD 1.2 billion) and EUR 941 million (USD 996 million) in capital outstanding to approximately 790 partners in 70 countries.

About Banco para el Fomento a las Iniciativas Económicas (Banco FIE)

Banco para el Fomento a las Iniciativas Económicas (Banco FIE) was established as an NGO in 1985 with the purpose of serving micro- and small enterprises in Bolivia. It continued to operate as a private financial fund starting in 1998. Since 2010, Banco FIE has been regulated as a bank offering credit, savings, insurance and cash transfer services in addition to making equity investments in small and medium-sized enterprises (SMEs), particularly in the agricultural sector. As of 2015, it reports total assets of USD 1.5 billion, a gross loan portfolio of USD 1.2 billion outstanding to 239,000 borrowers, total deposits of USD 1.1 billion and approximately 800,000 depositors.

Sources and Additional Information:

[1] Oikocredit Press Release: “Oikocredit boosts stake in Bolivia’s Banco Fie”

[2] MicroCapital Brief: “Incofin Microfinance Funds Exit Equity Investments in Bolivia’s Banco FIE”

[3] Microfinance Gateway: “Bolivia: Cartera de créditos de Banco FIE creció 150%”

[3] MicroCapital Universe Profile: Oikocredit

[4] MicroCapital Universe Profile: Banco para el Fomento a las Iniciativas Económicas (Banco FIE)

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