Hivos-Triodos Fund recently made a debt investment of USD two million in the Organización de Desarollo Empresarial Femenino (ODEF) Financiera. [1]

ODEF Financiera is a Honduran non-profit microfinance institution (MFI) that was first created in 1985 as a social development organization. [2] According to the MIX Market, the clearinghouse of MFI information, as of 2008, ODEF’s gross loan portfolio was reported as USD 26.6 million and total assets as USD 31 million. It has 27,244 active borrowers, of which 62 percent are women. Its return on assets is 3.36 percent, while its return on equity is 15.59 percent. [3]

The Hivos-Triodos Fund, founded in 1994, is a joint initiative between the Humanist Institute for Development Cooperation (Hivos) and Triodos Bank. The fund is managed by investment managers from Triodos and supervised by a board appointed by Hivos. [4] The fund aims to help develop young organizations that face relatively high risk profiles by bridging the gap between them and capital markets. [5] According to MIX Market data, fund assets were reported as USD 63 million as of 2008, and microfinance funds were allocated as USD 35.5 million, as of 2007. [5]

As reported by previous MicroCapital.org articles, the Hivos-Triodos Fund has invested in ODEF in the past. A March 2007 article reported that the fund invested USD one million in the institution [6], while a later article from May 2008 detailed that ODEF was provided a loan worth USD two million from the Triodos Fair Share Fund and the Hivos-Triodos fund as well. [7]

By Radhika Chandrasekhar, Research Assistant

Bibliography

[1] CGAP Microfinance Dealbook. August 2009 Deals. MicroCapital.org. http://www.microcapital.org/downloads/monitor_volume4/MicroCapitalMonitorPreview_Sep09.pdf

[2] ODEF. http://www.odef.org.hn/56.0.html

[3] ODEF Financiera. MIX Market. http://www.mixmarket.org/mfi/odef-financiera/data

[4] Hivos-Triodos Fund. Triodos. http://www.triodos.com/com/international_funds/micro_finance_and_fair_trade/spec_microfinance_funds/hivos_triodos_fund/htf

[5] Hivos-Triodos Fund. MIX Market. http://www.mixmarket.org/funders/htf

[6] Hivos-Triodos Invests 1 million in the Honduran Microfinance Institution, ODEF. 2007. http://www.microcapital.org/hivos-triodos-invests-1-million-in-the-honduran-microfinance-institution-odef/

[7] MICROCAPITAL STORY: Triodos-Doen Foundation, Triodos Fair Share Fund and Hivos-Triodos Invest a Total of $7.5M in Latin American Microfinance Institutions: Organización de Desarollo Empresarial Feminino (ODEF OPDF), EPDYME Edyficar, Fondo Financiero Privado para el Fomento a Iniciativas Economicas (FIE FIE) and FIE Gran Poder S.A. http://www.microcapital.org/microcapital-story-triodos-doen-foundation-triodos-fair-share-fund-and-hivos-triodos-invest-a-total-of-75m-in-latin-american-microfinance-institutions-organizacion-de-desarollo-empresarial-femini/#more-2063