Locfund Next, L.P.
Status: Investment in contracting phaseWhy 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 prospective customer?
Locfund Next, managed by Bolivian Investment Management (BIM), is a debt fund that provides local currency financing to Tier II and Tier III microfinance institutions (MFIs) across Latin America and the Caribbean. Launched in 2020 as a successor to Locfund I and Locfund II, Locfund Next continues to advance the goal of fostering financial inclusion and economic development in underserved communities throughout the region.
What is our funding objective?
FMO will provide a senior unsecured loan of up to USD 20mln, consisting of a USD 10mln committed tranche and a USD 10mln uncommitted tranche. The proceeds will be allocated to financing Tier II and Tier III MFIs in eligible countries across the Latin America and Caribbean region, enabling these institutions to extend microloans or support micro-enterprises.
Why do we want to fund this investment?
Locfund Next plays a crucial role in the financial ecosystem by providing local currency financing to Tier II and Tier III MFIs that FMO cannot directly reach due to their size and specific operational needs. By efficiently delivering much-needed local currency finance to these MFIs in the Latin America and Caribbean region, Locfund Next supports institutions that are pivotal in targeting underserved communities. This support, in turn, fosters greater access to finance and ultimately drives economic growth in these areas.
What is the Environmental and Social categorization rationale?
Locfund Next has been categorized as Category C following FMO’s Sustainability Policy. The Fund’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. Locfund adheres to the EDFI Exclusion List and local E&S laws and regulations. No IFC Performance Standards are triggered since the funds will be on-lent to MFIs that finance micro-enterprises. Moreover, given the high focus on investment in microfinance companies, Locfund Next is classified as high risk for Consumer Protection Principles (CPP). However, Locfund is committed to actively promoting the adoption of international best practices among the MFIs in its portfolio and has adequate structures in place to ensure and monitor compliance with client protection requirements.
More investments
| Date | Total FMO financing |
|---|---|
| 11/16/2020 | USD 10.00 MLN |
- Website customer/investment
- http://www.biminvestments.com/
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Financial Institutions
- Publication date
- 3/14/2025
- Deadline for feedback
- 4/13/2025
- Total FMO financing
- USD 10.00 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) - C