LocFund is an Investment Fund providing financing in local currency to microfinance institutions in Latin America and the Caribbean. Widely focused on institutions with limited access to funding and less opportunities to optimize their financing structure, LocFund provides local currency financing reducing local currency devaluation risks.
BIO is confident that its operations have a significant positive impact on the development of the local economy in underprivileged countries and on the improvement of living conditions of the local populations.
Under the financing agreement, the African Development Bank (AfDB), the Emerging Africa Infrastructure Fund (EAIF), the Netherlands Development Finance Company (FMO), the German Development Finance Institution (DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH), the South African Industrial Development Corporation (IDC), the Belgian Development Bank (BIO), together with Cordiant managed ICF Debt Pool, are providing debt financing of €133 million. The Swedish Development Fund (Swedfund) and FMO are to join AOG as equity partners. The total size of the investment is estimated at €267 million. The financial close and first draw down of loans and equity is expected to take place in November 2011.
A new report finds that international finance institutions play a key role in catalyzing job creation and growth through the private sector in emerging markets, particularly as governments face increased pressure on public resources.
Supporting SMEs and their growth
BIO is pleased to announce the first closing of the multi-sector private equity fund Maghreb Private Equity Fund III LLC (‘MPEF III’), with a size exceeding Euro 96 million of capital commitments alongside prestigious DFIs and institutional investors. MPEF III aims at financing Small and Medium Enterprises in Maghreb showing a strong growth potential and thus a direct impact on the local economy. MPEF III has been set up in the wake of the MPEF II fund in which BIO has already participated. Moreover, both Morocco and Algeria are partner countries of the Belgian Development Cooperation.
BIO participates in a loan facility of USD 91.25 million with the Emerging Africa Infrastructure Fund, the Netherlands Development Finance Company (FMO) and the African Development Bank to support the KivuWatt project, which aims at removing and processing otherwise hazardous methane gas trapped in the waters of Lake Kivu for use as fuel to generate critically needed electricity.