Project detail - LOCFUND NEXT LP

LOCFUND NEXT LP

Status: Approved investment
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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 Next (“Locfund”) is a 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 is managed by Bolivian Investment Management (“BIM”), a Bolivian fund management company well-known to FMO through previous investments (Locfund, Locfund II and Prospero Microfinanzas Fund). Locfund Next is the follow-on fund of Locfund II and Locfund.

What is our funding objective?

Up to USD 20 mln will be provided for on-lending in local currency to Tier II/III MFIs. Locfund will contribute to the development of these MFIs by assisting them to achieve a more diversified funding base while reducing FX risks, through the provision of scarce local currency finance and Technical Assistance (TA).

Why do we fund this investment?

Locfund provides much needed local currency finance to Tier II/III MFIs in the LAC region in an efficient way. These MFIs have an important role to play, targeting the underserved and thereby fostering access to finance and ultimately economic growth.

What is the Environmental and Social categorization rationale?

The Fund has been categorized as Category C in accordance with FMO’s Sustainability Policy. The Fund’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. Locfund will be required to adhere to the EDFI Exclusion List and local E&S laws and regulations. No IFC Performance Standards are triggered, since the funds will be on-lent to MFIs who finance micro-enterprises.

Website customer/investment
http://www.biminvestments.com/
Region
Latin America & The Caribbean
Country
Latin America & The Caribbean
Sector
Financial Institutions
Publication date
5/15/2020
Effective date
11/16/2020
Total FMO financing
USD 10.00 MLN
Funding
FMO NV
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)
C