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.
Potential SDGs supported:
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.