Swiss Investment Fund
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Locfund Next

Locfund Next is an open-ended fund with the aim to provide local currency financing to tier ii and tier iii microfinance institutions (MFIs) in Latin America and the Caribbean (LAC). it is the third local currency debt fund by Bolivian Investment Management (BIM), a microfinance investor headquartered in La Paz. BIM is building on the experience gained in its two previous funds, locfund i (2007) and locfund ii (2013), and seeks to continue serving microfinance institutions in the LAC region by offering local currency loans, other financial products and technical assistance. Locfund Next will focus on supporting MFIs in their digital transformation which will increase their outreach and therefore foster financial inclusion in the region. SIFEM’s investment consists of a senior loan (USD 6m) and equity (USD 4m) and has been critical for Locfund Next to reach its minimum equity amount at the first closing.

Locfund Next

Locfund Next is an open-ended fund with the aim to provide local currency financing to tier ii and tier iii microfinance institutions (MFIs) in Latin America and the Caribbean (LAC). it is the third local currency debt fund by Bolivian Investment Management (BIM), a microfinance investor headquartered in La Paz. BIM is building on the experience gained in its two previous funds, locfund i (2007) and locfund ii (2013), and seeks to continue serving microfinance institutions in the LAC region by offering local currency loans, other financial products and technical assistance. Locfund Next will focus on supporting MFIs in their digital transformation which will increase their outreach and therefore foster financial inclusion in the region. SIFEM’s investment consists of a senior loan (USD 6m) and equity (USD 4m) and has been critical for Locfund Next to reach its minimum equity amount at the first closing.

About the fund

In Latin America and the Caribbean (LAC), 45 per cent of people older than 15 years or approximately 217 million people do not have access to at least one financial service.

The investment will contribute to SDG 9 (building resilient infrastructure, promoting sustainable industrialisation and fostering innovation) and 10 (reducing inequality), but will also empower women and support gender equality (SDG 5) by financing women-led businesses, as more than 50 per cent of Locfund Next’s end beneficiaries are expected to be women.

Investments by the fund

             
Date Name Country Industry Status
2021 Company 1 Costa Rica Non-banking microfinance Active
2022 Company 2 Honduras Non-banking microfinance Active
2021 Company 3 Guatemala Non-banking microfinance Active
2022 Company 4 Guatemala Non-banking microfinance Active
2021 Company 5 Guatemala Non-banking microfinance Active
2020 Company 6 Honduras Non-banking microfinance Active
2021 Company 7 El Salvador Non-banking microfinance Active
2022 Company 8 Peru Non-banking microfinance Active
2020 Company 9 El Salvador Non-banking microfinance Active
2021 Company 10 Mexico Non-banking microfinance Active
2021 Company 11 Ecuador Non-banking microfinance Active
2020 Company 12 Colombia Non-banking microfinance Active
2021 Company 13 El Salvador Non-banking microfinance Active
2021 Company 14 Bolivia Non-banking microfinance Active
2021 Company 15 Peru Non-banking microfinance Active
2022 Company 16 El Salvador Non-banking microfinance Active
2020 Company 17 Mexico Non-banking microfinance Active
2020 Company 18 Ecuador Non-banking microfinance Active
2022 Company 19 Guatemala Non-banking microfinance Active
2021 Company 20 Nicaragua Non-banking microfinance Active
2022 Company 21 Colombia Non-banking microfinance Active
2022 Company 22 Nicaragua Non-banking microfinance Active
2022 Company 23 El Salvador Non-banking microfinance Active
2022 Company 24 Bolivia Non-banking microfinance Active
2021 Company 25 Nicaragua Non-banking microfinance Active
2021 Company 26 Bolivia Non-banking microfinance Active
2020 Company 27 Ecuador Non-banking microfinance Active
2022 Company 28 Paraguay Non-banking microfinance Active
2022 Company 29 Nicaragua Non-banking microfinance Active
2021 Company 30 Guatemala Non-banking microfinance Active
2022 Company 31 Bolivia Non-banking microfinance Active
2021 Company 32 Honduras Non-banking microfinance Active
2021 Company 33 Ecuador Non-banking microfinance Active
2022 Company 34 Colombia Non-banking microfinance Active
2021 Company 35 Mexico Non-banking microfinance Active
2022 Company 36 Nicaragua Non-banking microfinance Active
2022 Company 37 El Salvador Non-banking microfinance Active
2022 Company 38 El Salvador Non-banking microfinance Active
2021 Company 39 Panama Non-banking microfinance Active
2022 Company 40 Nicaragua Non-banking microfinance Active
2021 Company 41 Bolivia Non-banking microfinance Active
2021 Company 42 Nicaragua Non-banking microfinance Active
2022 Company 43 Nicaragua Non-banking microfinance Active
2021 Company 44 Mexico Non-banking microfinance Active
2022 Company 45 Ecuador Non-banking microfinance Active
2022 Company 46 Guatemala Non-banking microfinance Active
2021 Company 47 Mexico Non-banking microfinance Active
Reference code
2020-02
Status
Active
Date of commmitment
August 2020
Date of exit
-
SIFEM commitment
USD
4,000,000
Asset class
Private Debt
Investment strategy
Investment through Fund
Fund manager
Bolivian Investment Management (BIM)