By addressing the local currency funding gap for Tier II and III MFIs, Locfund II helps improve their capital structure and reduce currency risks. With its capital markets component, Locfund II further makes an important contribution to the development of the financial system and capital markets in Latin America. Additionally, Locfund II is complemented by a Technical Support Facility to finance tailored trainings for portfolio MFIs in areas such as asset/liability and risk management, corporate governance and capital market access. SIFEM committed USD 5m (of which USD 1m equity and USD 4m debt) to Locfund II.
Locfund II is the second local currency debt fund of manager Bolivian Investment Management, a seasoned microfinance investor headquartered in La Paz, Bolivia with offices in Costa Rica and Peru.