Nurturing and Supporting the Social Entrepreneur

2nd International Symposium on Social Investment

Presented by Tes Pilapil, Regional Director Southeast Asia

12 October 2013Tokyo, Japan

Our Aspiration

Encourage the sharing of resources

to reach out to disadvantaged

communities to improve economic

livelihoods through credit, equity

and capacity building

Our Experience• since 1975

• 100% private investment financed through sale of shares

• Diverse membershipo Churcheso Church-related institutionso Support associations (30 SAs in 13 countries)o Project partners

• Dual return: modest financial return andsocial return on investment

Facts & figures

859 partners in close to 70 countries

589 microfinance partners (of total number of partners)

€ 533 million outstanding

€ 105 million approved

€ 119 million disbursed

28 million clients reached by Oikocredit’s microfinance partners*

36 regional and country offices

*at 31 December 2012

At 30 June 2013

Oikocredit presence worldwide

Oikocredit offers funding to partners in close to 70 countries and attracts investments in 15 countries worldwide.

36 regional/country offices

countries with regional offices/RDC

countries with country offices

Southeast Asia Region

Focus Countries- PHILIPPINES (1989)- CAMBODIA (2003)

Expansion Area- VIETNAM (2008)- LAOS (2009)- INDONESIA- EAST TIMOR

Southeast Asia Region (as of June 2013)

5.5 Million people reached thru the

Partners

Facts & Figures: SEA (as of 30 June 2013)

• Funding by Sector

€41M93%

€1M2%

€2M5%

Microfinance

Other

Agriculture

Social Enterprises

Key features

• Value creation

• Commercial activity is strong revenue driver

• Addresses specific social need

• Involvement of the poor/marginalized/disadvantaged

groups

• Common good

• Multiple bottom-lines

Source: BC Center for Social Enterprise

Nurturing & Supporting Social Enterprises

Strengthen partners’ capacities to

sustainably deliver VALUE to

clients/members

Development financing/Investments

Organizational development

Capacity Building

• Loans• Equity investment

• Risk management• Product

development• Market positioning• Social performance

• Management systems

• Staff development• Partners’ feedback • Risk management +

control

Clients/ Members /Disadvantaged groups

Investment Flow

OIKOCREDIT

PROJECT PARTNERS

(MFI & SEs)INVESTOR

WORKING POOR/

DISADVANTAGED GROUPS

INVESTMENTS

REPAYMENTSDIVIDENDS

Financing Social Enterprises• Choosing the right partners

• Financial due diligence• Social due diligence

• Create jobs and income

• Cooperatives, financial institutions or SMEs

• Women in management positions

• Environmentally sustainable and respect animal welfare

• Suitable management structure

• Are (or can soon become) financially sustainable

• Clear need for foreign investment

Investment areas - Microfinance• Empowers people to invest in

themselves and future• Loans not aid• Fill the gap of traditional banks• Client protection

Agriculture• Rural microfinance • Production, processing, marketing, export• Value chain

Fair trade

• Empowering local producers

• Fair prices

• Fair payments to producers and employees

• Anti child labour policies

• Long-term trading relationships

• Environmentally sustainable production

methods

Strengthening the capacities of social enterprises

Financial Results

Social Impact

• Governance

• Finance Management

• Risk Management

Balanced double or multiple-bottom line

Partners with strong capacities to deliver VALUE in a sustainable way

Capacity Building

Sustainable value

creation

Product Development

Market Development&

Positioning

Risk Management

Social Performance Management

(SPM)

Disclaimer

This document was produced by Oikocredit, Ecumenical Development Cooperative Society U.A. (Oikocredit International) with the greatest of

care and to the best of its knowledge and belief at the time of writing. The opinions expressed in this document are those of Oikocredit

International at the time of writing and are subject to change at any time without notice. Oikocredit International provides no guarantee with

regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information.

This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a

recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own

judgment. The recipient is in particular recommended to check that the information provided is in line with his /her own circumstances with

regard to any legal, regulator, tax or other consequences, if necessary with the help of a professional advisor.

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Every investment involves risk, especially with regard to fluctuations in value and return. It should be noted that historical returns and financial

market scenarios are no guarantee of future performance. Investments in foreign currencies involve the additional risk that the foreign currency

might lose value against the investor‘s reference currency.

Oikocredit International is a cooperative society with limited liability (coöperatieve vereniging met uitgesloten aansprakelijkheid) under the laws

of the Kingdom of the Netherlands.