MICROCAPITAL STORY: Oikocredit of the Netherlands Lends $1.3m to Eastern Europe Microfinance Institution PRIZMA and $2.1m to East Asia Microfinance Institution Cambodian Entrepreneur Building Limited

The Microfinance Capital Markets Newsletter of the Consultative Group to Assist the Poor (CGAP) and the MIX, the microfinance information clearinghouse, reported Oikocredit, a co-operative financial development institution in the Netherlands, has issued a loan of USD 1.3 million to PRIZMA, an Eastern Europe microfinance institution (MFI), and issued another loan of USD 2.1 million to another MFI, Cambodian Entrepreneur Building Limited (CEB).

Oikocredit, established in 1975, is co-operative financial development institution that provides credit to credit cooperatives, MFIs and other viable enterprises that assist the poor. As of December 2006, Oikocredit had total fund assets of equivalent USD 455.7 million of which USD 198 million was allocated to 306 MFI investments. Oikocredit offers assistance via loans and debt securities, equity investments, guarantees, and technical assistance.

PRIZMA, based in Bosnia, was founded in 1997. According to its year end 2006 “financial data” on the MIX, the MFI had total assets of equivalent USD 17.1 million which consisted of a gross loan portfolio of equivalent USD 15.9 million. Return on assets for the MFI was 9.85% and it had return on equity of 17.61%. At the end of 2006, the MFI serviced 20,896 active borrowers of which approximately 97.1% are women. PRIZMA issues grants and loans to support poor and low-income women in an effort to provide working and investment capital, basic needs, shelter, and improved livelihoods. The average loan balance for borrowers is equivalent USD 763.

Cambodian Entrepreneur Building Limited (CEB) was founded in 1995 to assist poor women in urban and rural areas in developing income generating activities through access to microfinance credit and saving services. According to its year end 2006 “financial data” on the MIX, the MFI had total assets of equivalent USD 13.2 million which consisted of a gross loan portfolio of equivalent USD 12.2 million. Return on assets for the institution was 3.97% and it had return on equity of 17.18%. At the end of 2006, the CEB serviced 15,112 active borrowers of which approximately 97.7% are women. About 531clients are savers with average savings balance equivalent USD 454. Average loan balance per borrower is equivalent USD 813.

Additional Resources:

CGAP: “List of Recent Transactions”

MIX Market: “Profile for Oikocredit”

MIX Market: “Profile for PRIZMA”

MIX Market: “Cambodian Entrepreneur Building Limited”