PRESS RELEASE: Oikocredit of the Netherlands Announces Dividend, 44% Growth in Annual Disbursements to €135m to Microfinance Institutions and Other Partners

Source: Oikocredit International.

Original press release available here.

AMERSFOORT, February 5 – Oikocredit, the leading private international financier of microfinance, announced preliminary results for 2007. The figures reveal an unprecedented growth in disbursals of 44% compared to 2006: a total of EUR 135 million was disbursed to 266 project partners. The total amount outstanding with these partners is EUR 277 million, an increase of 33%. Considering these overall positive results, Oikocredit intends to continue paying a dividend of 2% to its members.

Oikocredit now supports 637 institutional project partners worldwide, including 390 microfinance institutions (MFIs). Through these partners, Oikocredit funding reaches more than 630,000 individual clients throughout the developing world, improving millions of lives in the process.

“The figures tell a very positive story,” said Oikocredit Managing Director Tor G. Gull. “But, growth is not only measured in financial performance. It’s also a question of social impact, reaching out to those who need support most.”

Expanding investment

Credit for development has become a dynamic market, especially in the microfinance sector. In 2007, total member capital increased by 16% to EUR 319 million. Despite this increase, demand continues to outpace supply. Several new initiatives were taken during 2007 to attract even more capital and further expand the Oikocredit investor base.

During 2007, Oikocredit began issuing shares in British pounds, Canadian dollars and Swedish kroner, in addition to euros and US dollars.

In 2008, possibilities to offer a savings product will be explored based on a successful pilot project in South Tirol, Italy, executed in collaboration with a local Raiffeisenbank.

Finally, in October 2007, Oikocredit took part in the launch of MicroPlace, an innovative online system of investing. A wholly owned subsidiary of E-bay, MicroPlace opens up the possibility of investing in microfinance to the retail investor in the US, starting with as little as USD 100.

2008: Focus on fair trade

In addition to microfinance, Oikocredit supports other types of organisations in developing countries such as fair trade producers, agriculture cooperatives and small and medium enterprises. Moving forward, Oikocredit is seeking to increase its investments in such organisations in 2008.

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