Talk Given by Birgit Weinbrenner


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Birgit Weinbrenner, Program Manager - Oikocredit - Netherlands

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Talk Given by Birgit Weinbrenner

  1. 1. TBLI Conference Paris 10 th November 2006
  2. 2. AFRICA, Ivory Coast Gbmamblé Lou Zamblé Philomène “ When my husband lost his job after the problems in 1993 our life became a nightmare. I had to take the lead and that’s why I decided to join the COCOVIVO market. I sell tomatoes and what I earn I could send my son to school and we have managed to build a house.”
  3. 3. ASIA, The Philippines Gilda Ponte CARD helped her to develop a small stall in the markets of Davao City. “Now my earnings have truly improved, I can afford to send my children to school and I can even save money in case of an emergency”
  4. 4. LATIN AMERICA, Nicaragua Alba Leticia and Megri Felipe Cardenas “ When we lost our house, we thought we had reached the very end and would not be able to start again. But we heard of ASODENIC and since then everything has changed for the better.”
  5. 5. EASTERN EUROPE, Romania Andor Fejer “ I decided to move back to what I knew best: being a tailor. I approached OMRO and they trusted me and my wife enough to help us invest in a new sewing machine”
  6. 6. Oikocredit’s Mission Oikocredit, as a worldwide cooperative society, promotes global justice by challenging people, churches and others to share their resources through socially responsible investments and by empowering disadvantaged people with credit
  7. 7. What is Oikocredit? <ul><li>Cooperative Society - one member one vote </li></ul><ul><li>International Development Finance Institution established in 1975 by Churches (WCC) </li></ul><ul><li>Operates with member capital (EUR 242 m) from churches, private individuals and institutions from all over the world </li></ul><ul><li>Finances income generating projects and financial intermediaries among marginalized and disadvantaged people in the South and Eastern Europe </li></ul><ul><li>For profit, but not for profit maximization </li></ul>
  8. 8. What makes Oikocredit unique? <ul><li>From pioneer to leading expert </li></ul><ul><ul><li>Pioneer in SRI </li></ul></ul><ul><ul><li>Investments used as credits for development </li></ul></ul><ul><ul><li>- Capital comes from private sector exclusively </li></ul></ul><ul><ul><li>Largest private financiers of the microfinance sector worldwide </li></ul></ul><ul><ul><li>Local presence and tailor-made financial services </li></ul></ul><ul><ul><li>- Development financing in both hard and local currencies </li></ul></ul>
  9. 9. What makes Oikocredit unique? <ul><li>A global movement </li></ul><ul><ul><li>- Focus on initiatives of people in developing countries that usually do not have access to conventional financing </li></ul></ul><ul><ul><li>Member share holders are spread across the continents </li></ul></ul><ul><ul><li>A support network of 37 volunteer – based Support Associations in Europe, North America and several developing countries </li></ul></ul>
  10. 10. Capital sources (per 31/12/05) <ul><li>514 Churches and church organisations </li></ul><ul><li>26 000 individuals and local congregations through 37 Support Associations in 319 countries </li></ul><ul><li>54 Banks, Development organisations and other non-church institutional investors </li></ul><ul><li>41 Project members </li></ul>
  11. 11. Members by region Percentages refer to the number of members by region as of 31 December 2005 (582)
  12. 12. Sources of share capital Percentages refer to the total of share capital as of 31 December 2005 (241.8 million euros)
  13. 13. 37 Support Associations ( repr. 26.000 individual investors ) Europe: Germany (8) France (5) Spain (2) The Netherlands (2) Belgium Switzerland (2) Austria Denmark Sweden Italy UK North America: Canada (3) USA (3) Latin America: Mexico Costa Rica Uruguay Asia: Philippines Japan Korea
  14. 14. Share capital inflow
  15. 15. Socially Responsible Investment <ul><li>High social return </li></ul><ul><li> Financial return usually 2% </li></ul><ul><li> Ethically sound (Ethibel Labels) </li></ul><ul><li> Safe investment </li></ul>
  16. 16. Safe Investment <ul><li>Long Term Investment Portfolio </li></ul><ul><li>Risk management </li></ul><ul><li>Governance Structure </li></ul>
  17. 17. Safe Investment <ul><li>Loan loss provisions: </li></ul><ul><li>18.1% as a percentage of total outstanding project portfolio (incl. provision for general risks) </li></ul><ul><li>Project financing write-offs: In 2005 0.3% of the total outstanding was written off. </li></ul>
  18. 18. Oikocredit worldwide          Regional offices Uruguay (RDC) Costa Rica (RDC) Peru India Philippines Kenya Ghana Ivory Coast South Africa Europe (RDC) Global Credits Argentina Bolivia Brazil Ecuador Mexico El Salvador Nicaragua Guatemala Tanzania Senegal Uganda Mali Bulgaria Romania Slovak Rep. Ukraine Country offices   June 2006
  19. 19. Project Partners Products Profiles <ul><ul><li>Oikocredit loans are directed at groups of disadvantaged people: </li></ul></ul><ul><ul><li> Cooperatives in agriculture, trade or services; </li></ul></ul><ul><ul><li> SMEs who provide jobs at fair conditions for their </li></ul></ul><ul><ul><li>employees; </li></ul></ul><ul><ul><li> Microfinance institutions extending micro- finance </li></ul></ul><ul><ul><li>services and retailing the Oikocredit loan into small </li></ul></ul><ul><ul><li>loans to micro enterprises of poor people; </li></ul></ul><ul><ul><li> Alternative trade organizations in the North and </li></ul></ul><ul><ul><li>South, who provide handicraft and food producers </li></ul></ul><ul><ul><li>with a fair market for their products </li></ul></ul>
  20. 20. Project Partners Products Profiles <ul><li>Financing </li></ul><ul><ul><li>Financing considered irrespective of faith, culture or age </li></ul></ul><ul><ul><li>Normally long term 2 – 10 years </li></ul></ul><ul><ul><li>Amount: 50,000 – 2 million euros </li></ul></ul><ul><ul><li>Interest rate related to market </li></ul></ul><ul><ul><li>Partnership ‘walking a second mile’ </li></ul></ul><ul><ul><li>Loans in local currencies </li></ul></ul>
  21. 21. Local Currency Loans
  22. 22. Local Currency Loans In EUR ,000 (approved plus outstanding)
  23. 23. Project Partners Products Profiles <ul><li>Financing criteria: </li></ul><ul><li>Feasibility </li></ul><ul><li>Preferably cooperative structure </li></ul><ul><li>Participation of women </li></ul><ul><li>Respect for environment </li></ul><ul><li>Impact on community </li></ul>
  24. 24. Oikocredit and Microfinance
  25. 25. Microfinance portfolio outstanding per December 2005 436 106,330 219 Total 426 3,998 12 Other 526 58,588 95 Latin America 488 13,682 31 Eastern Europe 282 15,119 44 Asia 338 14,943 37 Africa Average (EUR ,000) Outstanding (EUR ,000) Financing (no.) Region
  26. 26. Facts and Figures <ul><li>Type text bullet 1 here </li></ul><ul><ul><li>Type text bullet 2 here </li></ul></ul><ul><ul><ul><li>Type text bullet 3 here </li></ul></ul></ul>
  27. 27. Eur 000s YTD <ul><li>2004 2005 </li></ul><ul><li>Total assets 245,305 289,316 </li></ul><ul><li>Total investment portfolio 235,392 278,416 </li></ul><ul><li>Share Capital 203,520 241,843 </li></ul><ul><li>Investment grade bonds / shares 120,950 120,031 </li></ul><ul><li>Total project funding 114,339 158,385 </li></ul><ul><li>Number of projects invested 398 467 </li></ul><ul><li>Microfinance funding 60,866 106,330 </li></ul><ul><li>Number of MFI’s invested 169 219 </li></ul>
  28. 28. Project funding outstanding Project funding outstanding by sector Percentages refer to total amounts outstanding as of 31 December 2005 (163 million euros)
  29. 29. Project funding outstanding Project funding outstanding by region Percentages refer to total amounts outstanding as of 31 December 2005 (163 million euros)
  30. 30. Colophon OIKOCREDIT Presented by Birgit Weinbrenner Event TBLI Conference Date 9 th – 10 th November 2006