INVESTMENT

To maximize the economic gains and development impact of microfinance, SCCI will serve as a vehicle of social investors to provide funds to microfinance institutions. Young professionals, overseas Filipino workers, development organizations and philanthropists have currently entrusted funds to SCCI while SCCI in turn provides them with a return on investment of 6%-10% interest per annum. Cancer Warriors Foundation and World Wildlife Fund have availed of this service. SCCI manages funds of these organizations and places them in high-earning and low-risk microfinance institutions. The interest proceeds are then used for other development agenda such as health and environment. This mechanism started out as SEDPI’s advocacy to friends and relatives both in the Philippines and abroad.

SCCI made a first in the microfinance industry by offering a guarantee mechanism to Overseas Filipino Workers (OFWs). The guarantee mechanism hopes to spur the interest of OFWs to invest in SCCI that will be used to fund social enterprises and microfinance institution. This mechanism hopes to effectively leverage remittances for development.

At the launch of SEDPI’s portfolio, the only source of funds was from the proceeds of the consulting services. As the demand for loans grew, friends both in the Philippines and abroad started to invest. Some choose this option to diversify their own investment facilities. Most of them, however, take pride in investing in microfinance institutions that help the poor. They not only benefit from higher yield in their investments compared to commercial sources, they are also able to help the entrepreneurial poor.

LOANS

SEDPI Capital renders credibility to SEDPI in terms of having the actual experience in microfinance operations due to its practice; and at the same time; ensure the financial sustainability of the organization through sustainable investments.

The SME Financing Loan is geared towards clients who require higher loan amount than microfinance clients but still find it difficult to access funds from the formal financial system. Loan sizes are typically PhP50,000 to PhP500,000 and loan terms are typically one year. The MFI Wholesale Loan targets emerging and strengthened microfinance institutions who would otherwise have difficulty accessing funds from formal financial sources or are introducing new innovation in their financial service delivery. Loan amounts usually range from PhP150,000 to PhP5,000,000.