Locfund II - Technical Assistance

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LocFund II is a microfinance fund that provides debt financing in local currency to microfinance institutions in Latin America and the Caribbean. Largely focused on institutions with limited access to funding and less opportunities to optimize their financing structure, Locfund II provides local currency financing reducing the risk related to local currency devaluation.

In 2013, BIO approved a USD 4 million equity investment and USD 1 million senior loan to support the creation of Locfund II. BIO is participating alongside IADB, FMO and Norfund in funding the Technical Assistance Facility of Locfund II to support the local MFIs.

The technical assistance facility is aimed at:

- Helping MFIs to incorporate in the capital market ;

- Delivering tailor-made upgrading activities in the fields of assets and liabilities management, risk control and other specific risks;

- Improving the Environmental and Social management of MFIs; and

- Ensuring adequate knowledge dissemination.

Read more on BIO’s investment in Locfund II.