FONDO DE DESARROLLO LOCAL
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Fondo de Desarrollo Local (FDL) is an NGO founded in 1992 by Research and Development Institute Nitlapan in Nicaragua. FDL's mission is to enable micro, small and medium entrepreneurs to improve their standard of living by providing them with financial services. Currently FDL is the largest microfinance institution (MFI) in Nicaragua, with total assets of US$78 million, and the only institution of its kind with a substantial rural and agricultural portfolio focusing on smallholders. FDL's average loan size is US$1,000. Through a nationwide network of 37 branches, the MFI serves approximately 58,000 clients, 71% of which are in rural areas.
What is our funding objective?
FDL's ambition lies in leveraging its country-wide network to grow in a sustainable manner in accordance with its mission, and driven by customer demand. FMO's financing will support FDL's transition from NGO to non-banking financial institution (NBFI) regulated by the banking regulator with a license to attract deposits.
Why do we fund this investment?
Given FDL's focus on the largely underserved rural microfinance market of Nicaragua, this investment fits well within the inclusive finance pillar of FMO’s strategy. The main added value of FMO's financing lies in the long tenor of the facility, which allows FMO to act as a partner during FDL's internal and structural changes. The facility contributes to the stability of FDL's funding sources, which is key to becoming a regulated MFI.
- Website customer/investment
- http://www.fdl.org.ni
- Region
- Latin America & The Caribbean
- Country
- Nicaragua
- Sector
- Financial Institutions
- Effective date
- 11/14/2014
- End date
- 9/5/2017
- Total FMO financing
- USD 7.00 MLN
- Funding
- MASSIF
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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