Company name
Locfund II, L.P.
Project number
12241-01
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.
E&S category
FI-3
Country
Sector
Financial Institutions
Status
In implementation
Disclosed date
11/11/2017
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
N/A
Approval date
12/13/2017
Signed date
01/26/2018
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
N/A
Currency
N/A
Project scope and objective
In January 2015, the IDB approved a Loan to Locfund II comprised of an A Loan of up to US$15 million funded by IDB with its Ordinary Capital resources and up to US$7.5 million in a Co-Loan from the China Co-Financing Fund (the “China Fund”) to provide financing in local currency to microfinance institutions (“MFIs”), contributing to reduce the MFIs’ foreign exchange risk exposure and to support the expansion of their local currency lending capacity to micro- and small-sized enterprises (“MSEs”) in Latin America and the Caribbean (“LAC”).
As of August 2017, Locfund II has provided local currency loans to 47 MFIs that attend more than 1.3 million final clients in 13 countries of LAC. Locfund II has reached its initial targeted size. However, since the demand for local currency loans is still strong, Locfund II is looking for additional debt to increase its size and to benefit a larger number of MFIs’ clients.
The IIC, as member of the IDB Group, will support Locfund II’s expansion through a Loan of up to US$10 million (the “IIC A Loan”). Thus, the number of MFIs reached and final clients benefited will also increase. Locfund II expects to increase the number of MFIs’ clients by 13% totalizing 241,000 final beneficiaries during its life.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW
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