Frank Rubio, Regional Director

South America Northern Region

November 3, 2011

Peru Update

Agenda

1. Overview of Oikocredit Peru Office

2. Background on Sector in Peru

3. Oikocredit in Peru

4. Oikocredit in Peru: Microfinance

5. Oikocredit in Peru: Agriculture / Production

6. Oikocredit in Peru: Capacity Building

7. Conclusion

Oikocredit Peru

• Country office located in Lima, Peru

• Operating since 2005

• Frank Rubio (RM), Werner Thorne (DRM),Carina Torres (CM),

Yolirruth Nuñez (SPM), Cesar Maita (LO), and Paola Ozambela

Peru: Background Microfinance:

• MFIs regulated: 40, MFIs non-regulated: 34

• Portfolio: USD 7,984 million

• Clients: 2,728,946 active borrowers

• Individual, solidarity groups, and village banking

Credit and Saving Unions:

• 86 credit and saving unions, out of which 15 are regulated

• Portfolio: USD 354 million

• Clients: 111,456 active borrowers

Fair Trade and organic cooperatives/associations:

• 92 producers coops/assoc. certified, 25 new applicants

• Coffee, cocoa, banana, mango, tea, cotton, quinoa. Coming soon: maca and

wood.

• Nearly 70,000 small farmers

Our Portfolio

Total Outstanding Portfolio: EUR

34 million (Sep. 2011)

40 active projects

13 Fair trade and organic Projects

27 MFIs

4 Saving and Credit Unions

Countries with Largest Oikocredit PortfolioAt 31 December 2010

Oikocredit Peru Supports Projects that Generate…

Financial Return

Social Return

-Generates Positive Economic Returns

-Allows for greater incomes for beneficiaries

- Targets the poorest

- Provides positive quality of life changes

- Does not harm environment

How Do We Choose The Right Project Partners?

• Prior positive experience

in activity

• Targets poor clients

• Preference for rural over

urban

• Transparent and Fair

Pricing

• Social Performance

Strategy

OIKOCREDIT PERU IN MICROFINANCE

OIKOCREDIT PERU AND MICROFINANCE

Peru Microfinance Portfolio Facts & Figures:

• 27 Microfinance partners (12 NGOs, 4 Coops, 10 non-bank, 1 MF

bank)

• Total Microfinance Portfolio: € 24million

• PAR: 0%

• Average Loan Size: €600,000

• 2 Equity Investments (Confianza and Proempresa)

Microfinance Portfolio: What We Offer

• Loans

• Equity

Investments

• TA

Oikocredit Client Since: 2006

US$ 711,112 loans outstanding

Portfolio Balance: US$ 10,815,627

19,099 Total Clients

45% Target Rural areas

67% Target Women

31% New Clients Under Poverty Line

50% Exclusive Clients (bancarizacion)

Implementing New Health Products for Clients

NGO PRISMA:

Oikocredit Client Since 2009

US$ 825,397 loans outstanding

Portfolio Balance: US$ 4,711,421

16,145 Total Clients

31.0% Target Rural areas

88.4% Target Women

34% New Clients Under Poverty Line

60% Exclusive Clients (bancarizacion)

Implementing New Health Products for Clients

NGO FINCA PERU

Oikocredit Peru in agriculture

Our more active presence in the agriculture sector follows our mission and the conviction of having a more positive social impact in the farmer´s life.

Cocla, Quillabamba, Cusco

Productive Portfolio•Products:

• Coffee beans and roasted• Cocoa beans and chocolates• Cocoa powder, butter and

liquor• Banana• Sugar cane• Jam

•Credit lines:• USD 150k to USD 1.5 million• 10 coops, 4 associations

Productive Partners: Examples

Cepicafe: coffee, cocoa, sugar

cane and jams. FLO, organicNaranjillo: Cocoa and

Coffee. FLO, organic

Fair Trade Portfolio

Chirinos, technical staff

• First client Cepicafe (2006)• Credit lines for pre-exporting• Average amount: USD 500k• Mostly small farmer coops• 100% certified by FLO cert• Organic certification, NOP, and

USDA

Fair Trade Portfolio

CAC Oro Verde

• Others: UTZ, RA, Global Gap• Outreach: 280 to 7,500

farmers• Strong support from local

networks• Permanent contact with

international buyers.• Contact with Fair trade Liaison

Officers

Positive Impact of Fair Trade in Coops

• High outreach in rural areas

• Development of local economies

and poverty reduction

• Empowerment of farmers and

their families

• Increased income

• Improvement of social welfare

• Guaranteed minimum price and

social bonus for organizations

• Linking buyers with producers

CAC Oro Verde, buyers testing

Oikocredit Capacity Building Funds

Training Planning

Exchange Local Fairs

Thank you!