Source: LuxFLAG.

Original press release available here.

LUXEMBOURG, July 8 – The Luxembourg Fund Labelling Agency (LuxFLAG), created in July 2006, has granted on 7 July 2008 its microfinance label to Rural Impulse Fund SA SICAV-FIS (RIF).

RIF is a USD 38 million microfinance investment fund, that contributes to the alleviation of poverty in rural areas in developing countries.

The fund leads the way in closing the gap in the supply of rural microfinance by extending commercial funding to those microfinance institutions (MFIs), which are successful in providing financial services to rural poor, while being financially sustainable.

The investors include both development finance institutions (the European Investment Bank, FMO from the Netherlands, the International Finance Corporation (IFC), and BIO from Belgium) as well as a group of private investors.

RIF has been developed and promoted by Incofin, which also acts as fund advisor to the Fund.

The purpose of the label is to promote the raising of capital in microfinance by reassuring investors that the microfinance investment vehicle (MIV) really invests in microfinance and hence to contribute to responsible financing. It is not a guarantee of performance nor does it constitute a recommendation to invest.

Since its creation in July 2006, LuxFLAG has granted its label to five other MIVs.

The LuxFLAG list of labelled MIVs now comprises six MIVs that may use the label delivered by LuxFLAG.

Details of the six funds, which are promoted by major European financial institutions, are available on LuxFLAG’s website.