FMO has closed two debt facilities for a total of USD 8 million to the 10-year debt fund Social Investments Fund 6.0 (SIF 6.0)
The target fund size is USD 75 million and the Fund’s purpose is to provide senior loans to tier II/III MFIs and 'social enterprises' -entities providing basic products and services to the Base of the Pyramid (BoP)- in Latin American and Sub-Saharan Africa. SIF 6.0 is the sixth fund managed by Global Partnerships Fund Management LLC, which is owned by US-based NGO Global Partnerships (GP). FMO is investing USD 8 million from the MASSIF fund in 5 and 10-year notes that will catalyze shorter-tenor notes from impact investors. The Fund’s mission is to invest in sustainable solutions that help impoverished people earn a living and improve their lives. It does this by providing financing to social enterprises working in one or more of the following investment initiatives: (i) women-centered finance with education; (ii) women-centered finance with health; (iii) rural-centered finance with education; (iv) smallholder farmer services; and (v) solar lights. It is anticipated the Fund will invest in additional initiatives over time, such as home improvement finance or more efficient cook stoves.
“FMO is proud to have provided these facilities to SIF 6.0. With the Fund, GP is broadening its scope from MFIs that provide additional services to include other types of entities with a clear social impact”, says Chantal Korteweg, Manager Financial Institutions at FMO. Jeroen Harteveld, Fund Manager of MASSIF, added: “SIF 6.0 investment initiatives and the Fund’s expansion into Africa are a great match with MASSIF’s focus areas.”
“We are thrilled to again have FMO’s participation in our latest fund, which will support Global Partnerships’ ongoing expansion in sub-Saharan Africa, long-standing commitment to Latin America, and growth in emerging investment initiatives, such as smallholder farmer finance and solar lighting,” says Mark Coffey, Chief Investment & Operating Officer of Global Partnerships.
About Global Partnerships Fund Management
Global Partnerships is an impact-led investor, pioneering and investing in sustainable social enterprises who deliver high-impact products and services for people living in poverty. Everyone deserves the opportunity to earn a living, care for their families, and improve their lives. Our investments are focused around three opportunity areas: economic, energy and health. Global Partnerships currently invests in a portfolio of 50 microfinance institutions (MFIs), social businesses and cooperatives in 14 countries in Latin America, the Caribbean and East Africa.
About FMO
FMO is the Dutch development bank. As a leading impact investor FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development, and has a 45-year proven track record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 8.9 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information please visit www.fmo.nl.
About MASSIF
MASSIF is a financial inclusion fund that FMO manages on behalf of the Ministry of Foreign Affairs. The Fund provides much needed resources to small business and micro-entrepreneurs (MSMEs) by supporting the local financial intermediaries that can contribute to their development. For more information, please visit https://www.fmo.nl/massif.
Press contact:
Paul Hartogsveld
Senior Communications Officer (PR)
T: +31 70 314 9928
M: +31 6 11589127
E: p.hartogsveld@fmo.nl
