Project detail - CASEIF IV

CASEIF IV

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Who is our client

The Central America Small Enterprises Investment Fund (CASEIF IV) aims to provide growth capital to small and medium companies (SMEs) in Central America, Panama, Dominican Republic and Colombia. CASEIF IV targets to raise USD 75m in commitments and will be managed by Lafise Investment Management (LIM), a fund management company resulting from a joint venture between NORFUND and LAFISE Group. This represents a continuing relationship for FMO, having committed to the predecessor fund managed by LIM, CASEIF III, in 2014.

Funding objective

LIM intends to promote development and fight poverty by enhancing sustainable growth of private sector businesses. The investment strategy of CASEIF IV will be in line with the successfully implemented strategy of CASEIF III. CASEIF IV will provide mainly mezzanine and to a smaller extent equity financing to a diversified portfolio of SMEs in Central America, Panama, Dominican Republic and Colombia. This geographical focus is in line with the presence of LAFISE Group’s local offices. While LIM targets a multi-sectoral portfolio, the key focus will be on sectors such as agroindustry, food and beverage processing where LIM has gained considerable expertise. CASEIF IV will target a portfolio of 10-12 investees with an average ticket size of USD 6m.

Why we fund this project

An investment in CASEIF IV aligns strongly with FMO’s strategy to deepen relationships with existing partners and contribute to improving access to finance for SMEs in the Central American region.

Environmental and social rationale

The E&S categorization of CASEIF IV is B based on the pipeline and on LIM’s strategy. LIM has demonstrated a proven commitment towards E&S, undertakes rigorous ESG due diligence on its investees and ensures risk mitigation through an action plan aligned with the IFC Environmental and Social Performance Standards.

More investments

Date Total FMO financing
12/15/2021 EUR 0.13 MLN
Region
Latin America & The Caribbean
Country
Latin America & The Caribbean
Sector
Infrastructure, Manufacturing and Services
Signing date
12/11/2020
Total FMO financing
USD 7.72 MLN
Fund
FMO
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