Oikocredit confirms implementation of new capital-raising model

Oikocredit confirms implementation of new capital-raising model

AGM-2019-17.jpg15 février 2023

OIKOCREDIT, Ecumenical Development Cooperative Society U.A. (Oikocredit) will begin implementing its new capital-raising model on 1 March 2023, which is going to allow any eligible organisations and individuals to invest directly in the cooperative.

Investors across countries where Oikocredit offers the opportunity to invest will soon be able to buy, hold and sell the same investment product. This will be a non-voting equity instrument issued by Oikocredit, called a participation.

Oikocredit today received approval from the Dutch Authority for the Financial Markets (AFM) for its prospectus which provides material information about the offering of participations.

Participations are materially similar in financial terms to the member shares offered by Oikocredit, and to the other investment products issued by Oikocredit's support associations and Stichting Oikocredit International Share Foundation (OISF). Participations will become available to various investor groups in phases. Eventually they will replace both the member shares that Oikocredit currently issues only to cooperative members, and the other investment products that are derived from such member shares but issued by Oikocredit’s support associations and OISF.

Efficient, resilient and impactful model

The introduction of participations will result in a simpler and direct way for individuals and organisations to invest in Oikocredit.

Furthermore, by offering a single product (i.e. the participation), Oikocredit’s capital-raising work will be more efficient. This will allow the cooperative to use more resources for partnerships and projects that benefit low-income communities, and in promoting sustainable development together with its global network of investors, members and partners.

Changes to begin on 1 March 2023

Oikocredit’s members resolved to amend Oikocredit’s articles of association enabling the implementation of the new capital-raising model during an Extraordinary General Meeting on 14 October 2022. The amendment to Oikocredit’s articles of association is scheduled to occur on 1 March 2023. Oikocredit will begin implementing the new model as of the amendment to its articles of association.

Starting as of 1 March 2023, Oikocredit will gradually convert its outstanding member shares into participations. This conversion means that for investment products derived from member shares and issued by Oikocredit’s support associations and OISF, the underlying product will change from a member share to a participation.

Members of Oikocredit and investors in Germany will be able to invest directly in participations starting as of 1 March 2023, with other investor groups following in the months thereafter. Investors can read more about the upcoming changes on their country website(s).

As of 1 April 2023, Oikocredit will become the only entity offering an investment in countries where OISF currently offers investments in Oikocredit through depository receipts for member shares held by OISF. It is expected that the OISF board will resolve to end the administration of Oikocredit member shares as of this date and OISF will eventually be liquidated and dissolved as an entity. 

Oikocredit’s members are recommended to familiarise themselves with the amended articles of association, the participation terms, which will govern the relationship between investors and Oikocredit, and the prospectus. These documents as well as further information about the new capital-raising model are available here.

Support associations stand strong amidst changes

With the introduction of participations, investors will eventually no longer invest via the support associations and OISF. Notwithstanding these changes, Oikocredit’s support associations will continue to promote the cooperative’s mission in their regions, nurture local communities of investors and inform them about the work of Oikocredit and its partners. They will also continue promoting education on sustainable development together with Oikocredit and serve as the voice of their members.

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