The Inter-American Development Bank’s (IDB’s) Multilateral Investment Fund (MIF), a fund that finances micro- and small enterprises (MSEs); the Inter-American Investment Corporation (IIC), a member of the IDB that helps small and medium-sized enterprises (SMEs) gain access to finance; and the Corporación Andina de Fomento (CAF), an institution that mobilizes financial resources in Latin America, recently launched the Microfinance Growth Fund (MIGRoF), a facility expected to provide the equivalent of USD 250 million in medium- and long-term loans to microfinance institutions (MFIs) in Latin America and the Caribbean. The loans will be offered in both US dollars and local currencies. The launch of MIGRoF culminates the planning process that was first covered by MicroCapital in October.
MIGRoF expects to begin its lending operations in the coming weeks now that it has received a USD 125 million loan from the Overseas Private Investment Corporation (OPIC), a US government agency that invests in international development projects. MIGRoF was first announced by US President Barack Obama in April 2009, saying that MIGRoF is intended to be a new source of funding for MFIs that faced a reduction in lending capacity due to the global credit crisis. MIF is contributing an additional USD 10 million, IIC will contribute up to USD 5 million, and CAF will contribute up to USD 10 million in equity funding
Other investors in MIGRoF include BlueOrchard Finance S.A., a Swiss microfinance investment management company; Banamex, a Mexican private bank that is a subsidiary of Citibank; the Norwegian Microfinance Initiative (NMI), a Norwegian organization that makes international microfinance investments; and ACCION International, a United States-based nonprofit organization.
About the Inter-American Development Bank’s (IDB’s) Multilateral Investment Fund (MIF)
The Inter-American Development Bank’s (IDB’s) Multilateral Investment Fund (MIF) is an autonomous fund that is administered by the IDB, a bank that provides multilateral financing in Latin America and the Caribbean. It was created in 1993 to provide funding to micro- and small enterprises in Latin America and the Caribbean. It has 38 member countries that donate to the fund from Latin America and the Caribbean, North America, Europe and Asia.
About the Inter-American Investment Corporation (IIC)
Founded in 1985, the Inter-American Investment Corporation (IIC) is a member of the Inter-American Development Bank (IDB) group that helps small and medium-sized enterprises (SMEs) in Latin America and the Caribbean gain access to financial services. Since its inception, IIC has distributed USD 5.1 billion to 1.1 million SMEs. Additionally, IIC has provided nonfinancial, technical assistance and consulting to about 300 SMEs.
About Corporación Andina de Fomento (CAF)
Established in 1970 in Venezuela, Corporación Andina de Fomento (CAF) is a multilateral financial institution that provides financial services to both public- and private-sector clients in 16 Latin American countries as well as Spain. CAF has USD 10 billion in authorized capital. The services CAF provides include short-, medium- and long-term loans; technical assistance and financial advisory services.
About the Overseas Private Investment Corporation (OPIC)
The Overseas Private Investment Corporation (OPIC) is an independent U.S. government agency that provides financial support to companies that invest in less developed countries. It provides financing through direct loans as well as guarantees, political risk insurance and investment funds. It currently works in over 150 countries.
By Eric McKay, Research Assistant
Bibliography
[1] IBD Press Release, “FOMIN, IIC, investors, launch new lending facility for microfinance” March 20, 2010, http://www.iadb.org/news/detail.cfm?artid=6782&language=English&id=6782
Additional Resources
MicroCapital Universe: Inter-American Development Bank’s Multilateral Investment Fund (MIF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank%E2%80%99s+%28IDB%29+Multilateral+Investment+Fund+%28MIF%29
MicroCapital Universe: Inter-American Investment Corporation (IIC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Investment+Corporation+%28IIC%29
MicroCapital Universe: Corporación Andina de Fomento (CAF): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Corporaci%C3%B3n+Andina+de+Fomento+%28CAF%29
MicroCapital Universe: Overseas Private Investment Corporation (OPIC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Overseas+Private+Investment+Corporation+%28OPIC%29
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