co-o p e rat i ve s o f t he a me ri ca s re g i o na l co ... arnold kuijpers & hans...
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C O - O P E R A T I V E S O F T H E A M E R I C A S
R E G I O N A L C O N F E R E N C E
P A N A M A C I T Y, P A N A M A
1 5 S E P T E M B E R 2 0 1 5
Survey of Co-operative Capital
Charles Gould
Director-General
International Co-operative Alliance
www.ica.coopwww.ica.coopwww.ica.coop
www.ica.coopwww.ica.coopwww.ica.coop
A S K S
That the specific and unique legaland financial framework of a co-operative is fully acknowledged andrecognised in public policy andregulation, and that there should bea level playing field with other formsof business
That their model of business isgiven equal promotion with thestock holder model
That there should be a greaterdiversification of the globaleconomy.
www.ica.coopwww.ica.coopwww.ica.coop
U N S U S T A I N A B L E D E V E L O P M E N T G O A L S
"We acknowledge the role of the diverse private sector,
ranging from micro-enterprises to cooperatives to
multinationals”
• Financing for Development outcome document
• SDG – Means of implementation
www.ica.coopwww.ica.coopwww.ica.coop
www.ica.coopwww.ica.coopwww.ica.coop
B L U E R I B B O N C O M M I S S I O N
O N C O - O P E R A T I V E C A P I T A L
S U R V E Y O F C O - O P E R A T I V E C A P I T A L
A. Michael Andrews
Filene Research Institute
I N T R O D U C T I O N
Project overview
Well-known challenges
Many innovative examples
M A N Y I N N O VAT I V E E X A M P L E S …
→ Multiple share classes
→ Non-traditional share features
→ Fonterra, New Zealand-based dairy co-operative
→ Tiered or holding company structure
→ Cooperative Insurance Company (Kenya)
… A N D S O M E N O T S O I N N O VAT I V E …
→ Trade credit (accounts payable)
→ Coopfond (Italy)
→ Bank loans, term loans, leasing, factoring and all types
of short, medium and long term debt instruments
→ Suedzucker, German agricultural cooperative
→ Kooperative Förbundet, Swedish retail consumer cooperative
N E W A N D S M A L L E R C O - O P E R A T I V E S
Securities issuance
Co-operative investment
S E C U R I T I E S I S S U A N C E
→ Smaller and start-up co-operatives can access special
regulatory regimes
→ U.K. Community Shares Program
→ Microgenius
C O - O P E R AT I V E I N V E S T M E N T
→ Funds and specialized institutions created by the co-
operative sector itself or in conjunction with government
→ Les Sociétés Coopératives et Participatives (France)
→ Cooperazione Finanza Impresa (Italy)
T H E G L O B A L 3 0 0
Extensive use of alternative capital
Numerous innovative examples
T H E G L O B A L 3 0 0
0
20
40
60
80
100
InsuranceCooperativesand Mutuals
Agricultureand FoodIndustries
Wholesaleand Retail
Trade
Banking andFinancialServices
Industry andUtilities
Health andSocial Care
External equity capital Rated debt Alternative member capital
Percent using alternative capital, by sector
C O N C L U S I O N S A N D R E C O M M E N D A T I O N S
Capital Planning
Co-operative Investment
Policy Makers
C A P I TA L P L A N N I N G
→ Preserving co-operative principles and member control is
an additional dimension beyond the basics that apply to
any business
→ Availability of innovative options does not require their
use
→ Members willing and able to invest more—balancing
democratic control with unequal member investment
→ Attracting non-member investment—making the
instruments attractive while preserving member control
D E B T
→ Least controversial as debt instruments do not give up
any control and in substance vary little from bank and
other credit
E Q U I T Y
→ Selling equity to non-members can be controversial, but
many examples of structures that maintain majority
member control
→ Enhance liquidity through internal markets
→ Innovations in raising capital—virtual markets like
Microgenius
C O - O P E R AT I V E I N V E S T M E N T
→ One co-operative invests in another
→ Centralized funding vehicle accessing the market for
member cooperatives
→ Lever co-operative investment through a private equity,
mutual fund, unit trust or exchange-traded fund
→ Global Co-operative Impact Fund
www.ica.coopwww.ica.coopwww.ica.coop
GCI
FUND
Institutionalinve s tors
SHARES
En d owm e n tfo u n d ations
GRANTS
Financial institutions (co-op banks, credit unions, co-op era tive
MFIs, MFIs)
Larg e co-op era tives or co-op era tive p ro d u cer g rou p s
FUND MANAGER
Impulse Euro p e Inve s t m e n t Com m i t te e
SENIOR ANDSUBORDINATED
LOANS
TECHNICALASSISTANCE
GCIF u n d
How the GCI Will
Operate
Co-opinve s tors
SHARES
Board of Dire c tors
P O L I C Y M A K E R S
→ Enabling legislative framework
→ International standard-setters and national authorities
need to expressly consider cooperative and mutual
ownership models
→ Alliance’s International Accounting and Regulatory Affairs
Committee
→ Doing Co-operative Business
T H O U G H T L E A D E R S H I P P A P E R O N C O -
O P E R A T I V E C A P I T A L
• Frank Lowery & Wayne Schatz – The Co-operators (Canada)
• Arnold Kuijpers & Hans Groeneveld – Rabobank (Netherlands)
• Peter Hunt – Mutuo (UK)
• George Ombabo – African Confederation of Co-operative Savings
and Credit Associations (Kenya)
• Jean-Pierre Girard – Université du Québec à Montréal (Canada)
