Oikocredit is a worldwide cooperative and social investor, providing
funding to the microfinance sector, fair trade organizations,
cooperatives and small to medium enterprises.
Loans
Over the years, we’ve developed a range of financial products that can be tailored to meet the needs of each specific partner.
We give
loans instead of grants as we believe that loans are more effective for
achieving economic productivity. Loans create a real business
partnership based on mutual respect.
Credit lines
We provide credit lines which are generally shorter term, more
flexible loan arrangements. For example, if a borrower requires working
capital for a few months within a year.
Interest is paid only on the amounts drawn down at any
one point. A 1% maintenance fee is paid on the total approved amount of
the credit line.
Equity investments
Oikocredit
has a diverse and growing portfolio of equity investments. We invest in
equities for dual returns: development impact (social performance) and
capital gains. Oikocredit equity investments seek to collaborate with
companies that are aligned in bringing people out of poverty.
When we
invest in a company, our aim is to assist that company in becoming
stronger and more effective in reaching its goals to the benefit of
stakeholders and intended beneficiaries. This means that Oikocredit has
an active role in the governance of investee companies and makes sure
that we add value to them. This includes providing advice and contacts,
offering technical assistance where appropriate and making sure that the
company complies with environmental, social and governance
requirements.
If there is a sound balance between the company’s social, financial
and environmental objectives, this usually adds to the value of the
company.
Long-term investment horizon
Our equity investments have a long-term investment horizon, are
demand-driven and flexible, and can range from € 50,000 to € 5 million.
We can provide equity or quasi-equity (including convertible debt)
tailored to meet the needs of potential investee institutions.
Our equity partners are often looking for strong institutional shareholders which:
- share their mission and values
- bring expertise and insight to the organization
- focus on social as well as financial returns...."
