CASEIF IV
Status: Approved investmentWhy disclosure?
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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
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.
What is our 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 do we fund this investment?
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.
What is the Environmental and Social categorization 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
- Publication date
- 9/24/2020
- Effective date
- 12/11/2020
- Total FMO financing
- USD 7.72 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) - B