Locfund Next, a debt fund managed by Bolivia-based BIM Asset Management, recently accepted a 6-year loan of USD 20 million from IDB Invest, a member of the Inter-American Development Bank (IDB) Group. The loan is intended to help funders of micro-, small and medium-sized enterprises (MSMEs) to expand their outreach to female and rural clients. Accordingly, IDB Invest will complement the transaction with advisory services “to develop a gender and diversity strategy within the fund and the MFIs [microfinance institutions] in [its] portfolio.”
Launched in 2013, Locfund Next lends in local currency to MFIs. Formerly known as Bolivian Investment Management, BIM is an impact investment manager that was founded in 1997. Since then, it reports having invested in 100 MFIs. Among its 11 funds are Carlson Facilities, Locfund and Prospero Microfinanzas. In addition to Bolivia, the firm has offices in Nicaragua and Peru.
The goal of IDB Invest is to “finance sustainable companies and projects to achieve financial results and maximize economic, social and environmental development” across Latin America and the Caribbean. The institution is owned by its 48 member countries and holds total assets of USD 9.4 billion as of December 2022.
The IDB Group is active in Latin America and the Caribbean. In addition to IDB Invest, it comprises IDB, which provides “financial and technical support for countries working to reduce poverty and inequality,” and the IDB Lab, which tests models for facilitating growth that is inclusive of “vulnerable people affected by economic, social or environmental factors.”
By Renata Samadova, Research Associate
Sources and Additional Resources
IDB Invest press release
https://www.idbinvest.org/en/news-media/idb-invest-locfund-next-promote-financial-inclusion-through-microfinance-institutions
BIM homepage
https://biminvestments.com
Locfund Next description
https://www.biminvestments.com/en/fund/locfund-next-2
IDB Invest homepage
https://www.idbinvest.org
IDB Invest Annual Report 2022
https://idbinvest.org/en/publications/idb-invest-annual-report-2022
IDB homepage
https://www.iadb.org
Previous MicroCapital article on IDB Invest
https://www.microcapital.org/microcapital-brief-inmobiliaria-ruba-borrowing-up-to-75m-from-idb-invest-to-increase-access-to-affordability-of-housing-in-mexico/
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