MICROCAPITAL BRIEF: Oikocredit Lends $1.6m in Local-currency to Five Latin American Microfinance Institutions

Oikocredit, a microfinance investment fund in the Netherlands with assets of USD 665 million, recently loaned USD 1.6 million to five Latin American microfinance institutions (MFIs): Amanecer of Colombia, Coopesparta of Costa Rica, Proempresa of Peru, FINCA Peru and Norandino of Peru.

COP 500 million (USD 265,000) was loaned to Amanecer, which, as of 2009, had USD 7 million in total assets, 3,700 active borrowers, a return on assets (ROA) of 3.7 percent and a return on equity (ROE) of 9 percent. Oikocredit loaned CRC 100 million (USD 187,000) to Coopesparta, on which financial data is unavailable.

PEN 2.8 million (USD 990,000) was loaned to Proempresa, an MFI with total assets of USD 47.7 million, 38,500 active borrowers, an ROA of 1.59 percent and an ROE of 10 percent as of 2009. PEN 600,000 (USD 212,000) was loaned to each FINCA Peru and Norandino. As of 2008, FINCA Peru had total assets of USD 3.8 million, 12,300 active borrowers, an ROA of 9.6 percent and an ROE of 15.3 percent. As of 2008, Norandino had total assets of USD 1.6 million, 3,300 active borrowers, an ROA of 3.65 percent and an ROE of 11.5 percent.

By Stefanie Rubin, Research Associate

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 USD 665 million in total assets with 790 active investments, of which 543 were in MFIs.

About FINCA International:

The Foundation for International Community Assistance (FINCA) International is a global microfinance network serving over 700,000 people through its subsidiaries in 21 countries. As of 2008, it had total assets of USD 450 million, with an operating profit of USD 8.6 million.

Additional Resources:

Source Article: E-mail correspondence with MicroCapital, June 7, 2010

Microcapital Universe: Oikocredit: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oikocredit

Microcapital Universe: FINCA International: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=FINCA+International

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