Oikocredit and Kindred agree gradual winddown of GIC product offering
After five years of successful partnership, Oikocredit and Kindred Credit Union have agreed to phase out their cooperation agreement, which saw Kindred offer Global Impact Guaranteed Investment Certificates (GICs) for investment in Oikocredit.
The collaboration comes to a close based on a mutual agreement following the expiration of a five-year contract between the two organizations.
A structured and controlled wind-down will be completed by not renewing Global Impact GICs maturing in 2020 and via foreseen quarterly reductions of Kindred’s related investment in Oikocredit. Kindred will offer two options to members whose Global Impact GICs are scheduled to mature in 2021 and 2022: to hold the terms to maturity, without the connection to Oikocredit; or to redeem without penalty, starting in January 2021. Impacted members should contact Kindred for more information.
Thos Gieskes, Managing Director at Oikocredit, commented: “We’re thankful to Kindred Credit Union and their members for five years of supporting Oikocredit’s mission to improve the lives of people on low incomes. We remain committed to our local Canadian partners and investors who share our focus for social impact. We’ll continue to explore alternative offerings in the Canadian market, in line with our global strategy.”
Ian Thomas, Kindred’s chief executive officer, said: “The Oikocredit Global Impact GIC was a unique product and an important part of our offering. The interest and support from our members proved there is a need for more impact investment options in the marketplace and we are committed to exploring new opportunities.”
He added, “Kindred is pleased to continue to support Oikocredit’s mission through our membership in the cooperative and an existing $250,000 corporate investment.”