Responsible Investing and Canadian Churches KAIROS/SHARE WORKSHOP

Responsible Investing and Canadian Churches KAIROS/SHARE WORKSHOP

Where do we come from? 1968 Uppsala 1975 Creation Netherlands More than 30 years of experience

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.

Values Sharing Ecumenical spirit Grassroots People Integrity Creation

What is Oikocredit? International Development Finance Institution established in 1975 by the initiative of the World Council of Churches Cooperative Society - one member one vote Operates with private investment capital Finances income generating projects and financial intermediaries mainly in developing countries For profit, but not for profit maximization

Private capital for development Aimed at poverty alleviation Through loans or investment capital Aimed at microfinance institutions, cooperatives and small and mediumsized enterprises in developing countries.

Private capital for development Privately financed: 600 members churches; church-affiliated organisations; project members; International Share Foundation (ISF); support associations gathering 30,000 individuals. Total member capital: 319 million (as per 31/12/2007)

Membership Oikocredit Direct members Churches and church-related organizations Support associations International Share Foundation Project members Indirect members Individuals Local churches / congregations Other organizations

Socially Responsible Investments Social return rather than just financial return Modest yearly dividend

Unique network Countries of operation Countries of operation with support associations Countries with support associations

Project partners

Facts and Figures (as per 31/12/2007) 637 project partners (390 MFIs) 277 million outstanding 33 offices Active in + 65 countries

Project funding outstanding per region

Project funding outstanding per sector

Financing criteria Benefit disadvantaged people Cooperatives, MFIs, SMEs Viability Participation women Ecological impact/protection of species and animals

Financing products Loans between 50,000 2 million (premium loans up to 5 million) Maturity 1-10 years Credit Lines Equity Investments Guarantees (for loans from local banks) in rare cases

Interest rates Market rates Determinants: Risk of project and country Cost Development relevance

Financing in local currency Demand moving towards local currency loans 35 % of portfolio in local currency Local Currency Risk Fund (LCRF)

Securities Commitment!

Upland Marketing Foundation, Philippines South-South initiative Enabling small-scale producers to bring products to large urban markets First loan: 4,266,000 PhP (approx. 71,000 euros) Second loan: 12 million PhP (approx. 199,000 euros)

Emy Jollado, UMFI Emy Jollado: My wish is that my two daughters finish their school and find good jobs.

Small Enterprise Foundation (SEF)

Small Enterprise Foundation (SEF) MFI supports micro and small enterprises in South Africa Loan of 10 mln ZAR (approximately 866,000 euro)

Small Enterprise Foundation (SEF) Thanks to SEF, I am now able to pay my children s school fees. I can also provide my family with healthy food. I hope SEF will expand, so that they can help more clients, like they have helped me. Joyce Molele, client of SEF

Colophon Presented by Jill Martin Event Responsible Investing and Canadian Churches Date November 18, 2008