LOCFUND II, L.P.
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Locfund II is a USD 62 mln closed-end debt fund that provides local currency finance and underwriting services to Tier II/III microfinance institutions (MFIs) in Latin America and the Caribbean. The fund was established by BIM, a 16-year old fund management company well known to FMO through existing clients Locfund and Prospero Microfinanzas Fund.
What is our funding objective?
FMO has invested USD 8 mln in the equity tranche of Locfund II, which will be on-lent in local currency to Tier II/ III MFIs. Locfund II will contribute to the development of Tier II/ III MFIs by assisting them to achieve a more diversified funding base while reducing FX risks, both through the provision of scarce local currency finance and by transferring knowledge on Asset Liability Management (ALM), capital market transactions and more.
Why do we fund this investment?
Locfund II provides much needed local currency finance to Tier II/III MFIs in an efficient way. FMO usually cannot cater to the Tier II/III MFI segment directly; that would be too labor intensive. However Tier II/ III MFIs do have an important role to play since they often target a specific segment (agriculture, women, education and health services) or serve specific geographic regions (rural areas), thereby fostering access to finance and ultimately economic growth.
- Website customer/investment
- http://www.biminvestments.com
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Financial Institutions
- Effective date
- 11/11/2013
- End date
- 12/30/2022
- Total FMO financing
- USD 8.00 MLN
- Funding
- MASSIF
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B