MICROCAPITAL BRIEF: Triple Jump’s Oxfam Novib Microfinance Fund Provides Loan to Egyptian Microfinance Institution Al Tadamun

Triple Jump, a Dutch microfinance investment manager, recently reported to MicroCapital that is has provided a loan in local currency for an unspecified amount to Al Tadamun, an Egyptian microfinance institution (MFI) with total assets of USD 8.6 million in 2008. The loan will be funded by Oxfam Novib Microfinance Fund, which is a microfinance investment vehicle (MIV) managed by Triple Jump Fund Management with total investments of EUR 31 million (USD 40 million) for fiscal 2009. According to Triple Jump, this loan is “the first ever local currency direct loan to an MFI in Egypt made by an international MIV”.

As a result of strict regulation surrounding foreign investments, it took Triple Jump and Al Tadamun 18 months to obtain authorization from the Egyptian Ministry of Social Solidarity, the regulating entity for non-governmental organizations in the country, to proceed with the loan. According to Triple Jump and the ministry, both organizations expect that future applications can proceed more efficiently subsequent to this initial approval and as such, Triple Jump has already approved a second loan to Al Tadamun for an unspecified amount.

By Jennifer Shevock, Research Associate

About Triple Jump:
Triple Jump was founded in 2006 to support the expansion of microfinance institutions by providing capital and advisory services. Triple Jump currently has 150 investments with 135 microfinance institutions in 49 countries, for a total invested capital of USD 210 million. Triple Jump currently manages five investment funds.

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 microfinance institutions.

About Oxfam Novib Microfinance Fund:
The Oxfam Novib Microfinance Fund is a microfinance investment vehicle, which mobilizes capital for microfinance institutions.

The Oxfam Novib Microfinance Fund is managed by Triple Jump Fund Management. The fund provides equity, loan and debt securities investments in emerging microfinance institutions. Total investments for fiscal 2009 are EUR 31 million (USD 40 million).

About Al Tadamun:
Al Takamun is an Egyptian microfinance institution whose mission is to increase the income of women microentrepreneurs in the poor neighborhoods of Greater Cairo and in Egypt, and to improve their quality of life through providing access to sustainable and diversified financial services. According to the Microfinance Information Exchange, total assets are USD 8.6 million and gross loan portfolio is USD 7.2 million for 2008.

Sources and Additional Resources:
MicroCapital Universe: Triple Jump: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Triple+Jump

MicroCapital Universe: Oxfam Novib Microfinance Fund: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oxfam+Novib+Fund+%28ONF%29

MicroCapital Universe: Al Tadamun: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Al+Tadamun

Microfinance Information Exchange: http://www.mixmarket.org/mfi/al-tadamun

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/tiki-index.php

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