Company name

Locfund Next, LP

Project number

13764-01

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
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FI-3

Country

Regional

Sector

Financial Institutions

Status

Proposed

Disclosed date

06/09/2022

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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08/30/2022

Approval date

08/30/2022

Signed date

N/A

Sponsoring entity

N/A

Team leader

Parodi Serpa, Alberto Enrique

Investment type

Syndicated amount

N/A

Financing amount

USD $ 20,000,000

Currency

USD

Project scope and objective

The Project consists of a senior loan of up to US$20 million to support the expansion and consolidation of Locfund Next (the “Fund”), a fund that provides local currency financing to small and medium-sized microfinance institutions ("MFIs") in Latin America and the Caribbean ("LAC"). Locfund Next contributes to reducing the MFIs’ foreign exchange ("FX") risk exposure, which supports the expansion of their local currency lending capacity to micro and small-sized enterprises ("MSEs").

 

Locfund Next will contribute to advance financial inclusion by addressing key constraints that hinder MFIs’ growth and potential impact in delivering financial services to populations at the bottom of the pyramid. It will do so by: (i) providing local currency financing to small and medium-sized (Tier II and Tier III) MFIs; (ii) connecting MFIs with local capital markets for alternative sustainable local currency financing; and (iii) helping MFIs to modernize and reach their clients with better services, by facilitating their digital transformation.

 

The Fund will be managed by Bolivian Investment Management Ltd. (“BIM” or the “Fund Manager”), a company that has developed significant experience by managing several investment vehicles of an aggregate amount of above US$250 million.

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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.

LOCFUND NEXT ESRS - 13764-01 (ENG)

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Fernando Sanchez

POSITION

CEO

PHONE NUMBER

(591) 2- 2799046

EMAIL

fsanchez@locfund.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices