MICROCAPITAL STORY: Oikocredit of the Netherlands Invests $3.9m in Three South American Microfinance Institutions: Edpyme Nueva, Asociación Benéfica PRISMA, and Cooperativa de Ahorro y Credito 23 de Julio Ltd.

The Consultative Group to Assist the Poor (CGAP) recently reported Oikocredit, a Dutch cooperative investment fund, invested nearly USD 3.9 million in three microfinance institutions in South America. Cooperativa de Ahorro y Credito 23 de Julio Ltd. of Ecuador received a loan investment of 1.5 million. Peruvian microfinance institutions Asociación Benéfica PRISMA and Edpyme Nueva Vision received loans investments of USD 1.3 million and USD 1.1 million respectively.

Oikocredit is a Dutch cooperative investment fund comprised of church groups, social support groups, and individual investors. Established in 1975, Oikocredit invests in MFIs, small businesses and cooperatives with 637 projects worldwide in 37 focus countries. Oikocredit’s investments are largely successful, with loan loss of less than ten percent, throughout their 33 years of activity. The fund has USD 455.8 million in assets as of December 2006, with USD 131.7 million allocated for investments in microfinance institutions in the next twelve months.

Edpyme Nueva is a non-bank financial institution. Founded in Peru in 1998, the institution currently has nearly ten thousand active borrowers with a total loan portfolio of USD 11 million and total assets of USD 12.3 million. Their return on assets (ROA) is 1.06 percent with a return on equity (ROE) of 4.63 percent. Edpyme Nueva’s main objective is to provide financial services to local small businesses and microenterprises.

Asociación Benéfica PRISMA was established in Peru in 1986 as a non-profit NGO focusing on sustainable social and economic development. At the end of 2007 the institution had over 19,000 active borrowers with a loan portfolio of USD 7.3 million and total assets of USD 8.3 million. Their return on assets (ROA) is 2.24 percent and return on equity (ROE) is 5.76 percent.

Cooperativa de Ahorro y Credito 23 de Julio Ltd. is an Equador-based microfinance institution first established in 1964, made up of three separate credit and savings cooperatives. Their mission is to aid in the social and economic development of Ecuador. The institution’s current total assets exceed USD 48 million with a return on equity (ROE) of 20.1 percent as of 2006.

By Melissa Duscha

Additional Resources:

Asociación Benéfica PRISMA

The Consultative Group to Assist the Poor (CGAP)

The Consultative Group to Assist the Poor (CGAP) recent list of transactions

Cooperativa de Ahorro y Credito 23 de Julio Ltd.

Edpyme Nueva

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MICROCAPITAL STORY: Oikocredit of the Netherlands Invests $12.2m in Latin American Microfinance Institutions

Oikocredit:http://www.oikocredit.org/site/en/index.phtml?p=newhome

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

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