MICROCAPITAL STORY: Netherlands-based Oikocredit Invests $2.8m in Cambodian Microfinance Institutions Hatha Kaksekar Ltd and AMRET

CGAP (Consultative Group to Assist the Poor) recently reported that Dutch-based Oikocredit made investments in two Cambodian microlenders: a USD 1.28 million loan to HKL (Hatha Kaksekar Ltd) and a USD 1.55 million equity investment in AMRET.

Established in 1975 by nonprofit World Council of Churches, Oikocredit is a Dutch cooperative investment fund comprised of various types of investors including church groups, social support groups and individuals. Oikocredit’s debt-capital and equity investments focus on microfinance institutions but also include small businesses. As of December 2007, Oikocredit held 390 active investments spanning 37 countries on five continents.

As reported by MIX Market, the microfinance information clearinghouse, Oikocredit held USD 614.5 million in total assets as of December 2007, and had allocated USD 179.4 million toward future investments in microfinance institutions over the next twelve months. In its 33 years of operation, Oikocredit has experienced a default rate of less than ten percent on its loans.

MicroCapital has reported several loans made by Oikocredit in 2008, including USD 6.2 million to Balkan commercial bank Opportunity Bank of Montenegro, USD 2.5 million to commercial bank Micro Finance Bank of Azerbaijan (MFBA) and USD 1.6 million to Polish microfinance institution Inicjatywa Mikro. Stories covering these transactions may be found in this listing of recent MicroCapital stories on Oikocredit.

Established in 1996, Oikocredit loan recipient HKL is a non-bank financial institution that provides microloans in Cambodia’s rural areas. MIX Market reports, as of December 2007, that HKL held total assets of USD 16.4 million, nearly USD 10 million greater than its total assets reported for 2006. The organization had a gross loan portfolio of USD 14.0 million, a debt-equity ratio of 448.45 percent and return on assets of 5.53 percent. HKL received a BBB+ in 2007 from Italian microfinance rating agency Microfinanza.

Established in 1991, AMRET is a non-bank financial institution that provides microloans to clients in Cambodia’s rural areas. At the end of 2007, AMRET had total assets of USD 38.7 million, a gross loan portfolio of USD 30.7 million, a debt-equity ratio of 426.01 percent and reported return on assets of 8.24 percent. AMRET received an A- in 2007 from Microfinanza rating agency.

By Ryan Benson, Research Assistant

Additional Resources:

The Consultative Group to Assist the Poor: Home

The Consultative Group to Assist the Poor: Recent list of transactions

HKL: Home

AMRET: Home

Pro Mujer: Home

Oikocredit: Home

Oikocredit Active Portfolio: http://www.oikocredit.org/documents/projects/PortfolioUK.pdf

World Council of Churches: Home

MIX Market: Oikocredit Profile

MIX Market: AMRET Profile