Finance for Microfinance Institutions

Triodos-Doen, Hivos-Triodos Fund and Triodos Fair Share Fund provide loans, equity investments and guarantees to microfinance institutions and short-term trade finance to certified ‘Fair Trade’ or organic producers.

Criteria
In an extensive due diligence process a potential partner is evaluated on a wide number of aspects, including the organisation’s mission and vision, context of operations, ownership structure, governance and portfolio quality.

Loans
Loans are offered in euros, US Dollars and, in specific situations, in local currencies as well. Loans usually range from EUR 200,000 to EUR 1,500,000 (or the equivalent in another currency). Loan periods are up to a maximum of five years. Disbursement and repayment schedules can be structured in different ways, according to the needs of the borrower. It is policy to charge interest rates that are in line with market rates. 
The funds also provide syndicated loans jointly with other financiers such as Dutch development finance organisations. In this way, funds are deployed more efficiently so that the companies invested in, benefit from dealing with only one organisation, but have access to larger amounts. 

Equity
In specific cases, the funds participate in the share capital of an organisation. Examples include microfinance banks or microfinance NGOs wanting to convert into regulated microfinance institutions and in need of additional capital. Senior Triodos Bank co-workers are represented on the Board of Directors and contribute to the governance of these banks. Our partners value the expertise we bring as a small independent bank with clear social and commercial objectives. We aim for a fair return on investment in line with what can be reasonably expected in the specific market sector.

Guarantees
In extraordinary cases a guarantee is a suitable form of finance, for example in cases where the funds are not allowed to lend directly to an Microfinance Institution because of country regulation or where the local currency is very unstable and it is not possible for the funds to lend in local currency. In these cases the funds can provide a guarantee to a local commercial bank that would then provide a loan in local currency to the MFI. In these cases the funds charge a yearly provision fee between 3% and 6%.

Trade finance
Click here for more information on our trade finance activities. 

Application procedure
If you wish to apply for finance from Triodos-Doen, Hivos-Triodos Fund or Triodos Fair Share Fund and you are convinced your organisation fits within the strategy as explained on this website we ask you to provide the required information as described in the application form of the respective fund.

 

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Contact us

You can send us an e-mail, find the addresses of our offices or request a brochure.

First investment of the Ampere Equity Fund

9 April 2008 - Participation in largest onshore wind farm in the Netherlands.

Triodos Bank announces strong growth, of 23%, in 2007

29 February 2008 - The bank’s net profit rose by 46% to EUR 9 million. Earnings per share rose by 13%, to EUR 3.85.

Triodos Bank launches Sustainable Trade Fund

22 February 2008 - Impulse for export of organic and Fair Trade products from developing countries to Western markets.

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