Locfund Next, a debt fund managed by BIM Asset Management, recently received an investment of USD 8 million from US-based technology firm Google as part of USD 200 million Google has committed to support organizations that invest in small businesses across the globe to help them adjust to the challenges of the COVID-19 pandemic. The funding from Google is directed through the Inter-American Development Bank (IDB) Group’s IDB Lab, which is also providing USD 4.5 million to Locfund Next.
IDB Lab CEO Irene Arias said, “This joint investment will allow IDB Lab to accelerate its work in financial inclusion by creating permanent solutions that facilitate access to financing and support the digitization of financial intermediaries.”
BIM created Locfund Next in 2013 to provide financing in local currency to microfinance institutions in Latin America and the Caribbean. As of 2021, the fund has a volume of USD 80 million.
Formerly known as Bolivian Investment Management, BIM is an impact investment manager that was founded in 1997. As of 2021, it has an investment portfolio of USD 225 million. Among its 11 funds are Carlson Facilities, Locfund and Prospero Microfinanzas.
The IDB Group is comprised of IDB; the Inter-American Investment Corporation, which uses the trade name IDB Invest; and the Multilateral Investment Fund, which uses the trade name IDB Lab. Established in 1993, IDB Lab is an “innovation lab” that tests models for facilitating inclusive growth. During the third quarter of 2020, it approved 16 projects with a total value of USD 9.5 million.
By Aakansha Shenoy, Research Associate
Sources and Additional Resources
IDB press release
https://www.iadb.org/en/news/idb-and-google-partner-strengthen-small-businesses-latin-america-and-caribbean
Google article
https://blog.google/inside-google/company-announcements/commitment-support-small-businesses-and-crisis-response-covid-19/
BIM homepage
https://biminvestments.com/
IDB Lab homepage
https://bidlab.org/
IDB Group homepage
https://www.iadb.org/
Did you know that MicroCapital publishes the MicroCapital Monitor each month? Find out more at https://www.microcapital.org/products-page.
Similar Posts:
- MICROCAPITAL BRIEF: BIM Borrows $20m from IDB Invest for Locfund Next to Support Lenders to MSMEs in Latin America, Caribbean
- MICROCAPITAL BRIEF: IDB Lab Accepting Applications from Entrepreneurs in Latin America, Caribbean for WeXchange Women STEMpreneurs Competition, Partner of Google for Startups, Through March 31
- MICROCAPITAL BRIEF: IDB Invest Lending $30m to Atlantic Bank in Support of MSMEs in Belize, with a Focus on Women-owned Firms
- MICROCAPITAL BRIEF: IDB Invest, Sura Investments Channeling $25m in Loans to SMEs, Mid-market Firms in Colombia
- MICROCAPITAL BRIEF: MSMEs in Amazon to Access $900m Loan Pool from IDB, BNDES of Brazil
