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An ethical investment An ethical investment An ethical investment An ethical investment
with financial and with financial and with financial and with financial and
social performance social performance social performance social performance
Finance Avenue
November 15th, 2014
Presented by
Alex TackAlex TackAlex TackAlex TackRegional manager for Latin
America
Alterfin cvbaAlterfin cvbaAlterfin cvbaAlterfin cvba----scrl is a cooperative society scrl is a cooperative society scrl is a cooperative society scrl is a cooperative society created created created created in in in in 1994 by1994 by1994 by1994 by
• NGOs: 11.11.11, Vredeseilanden, Oxfam
Wereldwinkels & Oxfam Solidariteit, FOS, ...
• Banks: Triodos, HBK Spaarbank
• Meanwhile about 4.500 private shareholders have
joined the cooperative
MissionMissionMissionMission
Mobilise capital in the North to support the development of a
financial network that is accessible to poor people in the
South
Creation and mission
Board of Directors
Composition of board of directors :Composition of board of directors :Composition of board of directors :Composition of board of directors :
• NGOs
• Finance sector
• Private shareholder representatives
• Independant directors
The Alterfin team
Management and back officeManagement and back officeManagement and back officeManagement and back office
CreditCreditCreditCredit Management TeamManagement TeamManagement TeamManagement Team
Capitalon Dec. 31st 2012
on 30/9/2013
What happens with our share capital?
Alterfin Alterfin Alterfin Alterfin provides credit to two provides credit to two provides credit to two provides credit to two sectors in the sectors in the sectors in the sectors in the South: South: South: South:
• Microfinance Institutions
Example of investment: loan / 400.000 USD / 36 months / 8,50%
The organisations dispatch our funding into small (micro)credits
Sectors: agriculture, trade, services, production, housing, ...
• Sustainable agriculture (mainly fair trade & organic)
Example of investment: credit line / 250.000 EUR / 8 months / 7,00%
Working capital for prefinancing, gathering, processing and commercialisation
of produce
Sectors: coffee, cocoa, wine, banana, honey, sesame,…
Characteristics of our financing
Investments Investments Investments Investments <<<<--------> Gifts> Gifts> Gifts> Gifts
• Types: loan, guarantee, participation
• Gifts: dependence, disturbance of market, not scalable
Intermediaries Intermediaries Intermediaries Intermediaries <<<<--------> Final beneficiaries> Final beneficiaries> Final beneficiaries> Final beneficiaries
• Local initiatives
• Efficiency
Portfolio and number of partnerson Dec. 31st 2012
on 30/09/2014
0000
20202020
40404040
60606060
80808080
100100100100
120120120120
140140140140
0000
5.000.0005.000.0005.000.0005.000.000
10.000.00010.000.00010.000.00010.000.000
15.000.00015.000.00015.000.00015.000.000
20.000.00020.000.00020.000.00020.000.000
25.000.00025.000.00025.000.00025.000.000
30.000.00030.000.00030.000.00030.000.000
35.000.00035.000.00035.000.00035.000.000
40.000.00040.000.00040.000.00040.000.000
45.000.00045.000.00045.000.00045.000.000
EUR
EUR
EUR
EUR
Capital Portfolio Alterfin Nb. Active partners
Nb.
Nb.
Nb.
Nb.ac
ac
ac
active
tive
tive
tive partners
partners
partners
partners
Geographical scopeon Dec. 31st 2012
on 30/09/2014
85,24%85,24%85,24%85,24%
6,69%6,69%6,69%6,69%
6,61%6,61%6,61%6,61%
85,2% Latin America85,2% Latin America85,2% Latin America85,2% Latin America
6,7% Africa6,7% Africa6,7% Africa6,7% Africa
6,6% Asia6,6% Asia6,6% Asia6,6% Asia
0,8% Middle East0,8% Middle East0,8% Middle East0,8% Middle East
0,7% International0,7% International0,7% International0,7% International
Alterfin around the world
Investment of 38 Mio EUR for 116 South partners in 27 countries
Portfolio distribution by sectoron Dec. 31st 2012
on 30/09/2014
59,4%
5,4%
14,0%
5,2%
4,5%
2,8%
59,4% Microcredit
5,4% Funds
14,0% Coffee
5,2% Cocoa
4,5% Wine
2,3% Honey
2,8% Sesame
0,9% Sugar cane
0,8% Olive oil
0,6% Brazil Nuts
0,9% Quinoa
0,7% Rice
0,7% Soy
0,6% Banana
0,2% Blueberry
0,0% Mango
1,0% Others
Fondesurco Fondesurco Fondesurco Fondesurco (Peru(Peru(Peru(Peru))))
• Rural microfinance in remote areas of South Peru
• Generally the first institution intervening in a certain area
• Balance between financial and social return
• Strong compromise with conservation of the environment
Microfinance: an example
CPCCPCCPCCPC: financing small scale coffee farmers in : financing small scale coffee farmers in : financing small scale coffee farmers in : financing small scale coffee farmers in
Southern Laos (SE Asia)Southern Laos (SE Asia)Southern Laos (SE Asia)Southern Laos (SE Asia)
• 1796 members, 60% of them living on less than 1$/day
• Selling all their coffee Fair Trade at Coffee Rombouts
• Support to the farmers: Technical Assistance
• Benefits for the whole community: investment in
health and education
Sustainable Agriculture: an example
Credit Analysis
Social Social Social Social criteriacriteriacriteriacriteria
• Marginalised groups of society
• Involvement of clients and decision making process
• Ownership/property and profit question
Financial Financial Financial Financial criteriacriteriacriteriacriteria
• Balance sheet, Profit & Loss account, Cash flows
• Specific:
• Microfinance � portfolio of micro credits
• Fair Trade � sales
Fund manager for third parties
AlterfinAlterfinAlterfinAlterfin finances organisations in the Southfinances organisations in the Southfinances organisations in the Southfinances organisations in the South
• With own ressources = with share capital of the
cooperative Alterfin
• With other ressources
�Alterfin builds up portfolio and monitors investments
�Generally only for existing clients of Alterfin
• Calvert Foundation (USA)
• Fefisol & Fopepro
Global outreachon Dec. 31st 2012
Clients/producers reached by type of living areaClients/producers reached by type of living areaClients/producers reached by type of living areaClients/producers reached by type of living area64% living in rural areas
36% living in urban areas
Clients/producers reached by genderClients/producers reached by genderClients/producers reached by genderClients/producers reached by gender60% women
40% men
Total reachTotal reachTotal reachTotal reach57.620 persons and their families
on 31/12/2013
Alterfin shares
CharacteristicsCharacteristicsCharacteristicsCharacteristics of of of of investmentinvestmentinvestmentinvestment
• Social return
• Accessible and flexible
• Financial return: dividend
• Fiscal stimulus for Belgian taxpayers
Price Price Price Price
• Private persons: 62,50 EUR per share
• Organizations: 250 EUR per share
• Tax reduction: 5% of invested money in Alterfin for 5 years
(~ extra return of 1% per year)
• Min. investment 437,5 EUR (7 shares)
� 21,88 EUR tax benefit
• Investment 6.437,5 EUR (103 shares)
� 320 EUR maximum tax benefit
Tax benefits for private investors
Dividend in %
1,501,501,501,50
1,001,001,001,00 1,001,001,001,00
1,501,501,501,50 1,501,501,501,50 1,501,501,501,50
1,751,751,751,75
2,752,752,752,75
4,004,004,004,00 4,004,004,004,00
3,503,503,503,50
3,753,753,753,75
3,353,353,353,35
3,003,003,003,00
2000200020002000 2001200120012001 2002200220022002 2003200320032003 2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 2013201320132013
Thank you for your attention
Alterfin cvba/scrl
Haachtsesteenweg 159/
Chaussée de Haecht 159
1030 Brussels
Belgium
www.alterfin.be
Visit us on booth
705 !