Incofin IM and BIO join forces to broaden outreach towards the less mature microfinance institutions

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Incofin Investment Management (Incofin) and the Belgian Investment Company for Developing Countries (BIO) have signed a cooperation agreement aimed at helping develop less mature microfinance institutions in Africa, Latin America and Asia. With a facility of €10 million, this agreement is specifically designed for investment in Tier 2 and Tier 3 microfinance institutions.

Through this agreement, BIO has access to Incofin’s network of microfinance institutions, allowing BIO to broaden its outreach in the targeted microfinance sector. BIO also benefits from Incofin’s considerable expertise and experience in the field of sourcing, analysing and monitoring investment opportunities in the microfinance sector. BIO has already invested in several successful microfinance funds initiated by Incofin - Impulse Microfinance Fund and Rural Impulse Fund I & II. With this agreement, the two organisations settle their commitment to pursuing a fruitful co-operation in deepening access to financial services in developing and emerging countries.

“Thanks to this co-operation agreement, Incofin IM contributes to channeling investment funds of BIO to smaller, early-stage and difficult to access Tier 2 and Tier 3 microfinance institutions worldwide. The agreement is a good example of balanced co-operation and additionality between a development finance institution and a private fund manager” states Loïc de Cannière, Managing Director at Incofin Investment Management.

“Microfinance is recognised as a powerful tool for raising living standards, creating jobs, and boosting economic growth. We are convinced that this collaboration is an excellent way to achieve our mission. Incofin is pursuing similar development goals and has demonstrated that it has solid experience in funding effective microfinance institutions with strong social impact in difficult markets”, notes Hugo Bosmans, Chief Executive Officer at BIO.