Locfund Next, LP
FI-3 operations are those where the risk potential is considered low: the FI’s current or future portfolio consists of financial exposure to business activities that predominantly have minimal or no adverse environmental and social impacts.
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
Parodi Serpa, Alberto Enrique
USD $ 20,000,000
Project scope and objective
The Project consists of a senior loan of up to US$20 million to support the expansion and consolidation of Locfund Next (the “Fund”), a fund that provides local currency financing to small and medium-sized microfinance institutions ("MFIs") in Latin America and the Caribbean ("LAC"). Locfund Next contributes to reducing the MFIs’ foreign exchange ("FX") risk exposure, which supports the expansion of their local currency lending capacity to micro and small-sized enterprises ("MSEs").
Locfund Next will contribute to advance financial inclusion by addressing key constraints that hinder MFIs’ growth and potential impact in delivering financial services to populations at the bottom of the pyramid. It will do so by: (i) providing local currency financing to small and medium-sized (Tier II and Tier III) MFIs; (ii) connecting MFIs with local capital markets for alternative sustainable local currency financing; and (iii) helping MFIs to modernize and reach their clients with better services, by facilitating their digital transformation.
The Fund will be managed by Bolivian Investment Management Ltd. (“BIM” or the “Fund Manager”), a company that has developed significant experience by managing several investment vehicles of an aggregate amount of above US$250 million.
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