Fondo de Desarrollo Local


Fondo de Desarrollo Local started as an NGO and is now a regulated microfinance institution operating in Nicaragua, mainly offering loans to micro and small enterprises.

FDL is a nonprofit institution with a strong social mission and rural focus. FDL has become a leader in the MFI sector. Its main competitive advantages are a clear customer intimacy strategy, competitive pricing, social commitment and their excellent knowledge of the rural and agricultural market that has been essential for the design of products and services according to customer’s needs.

BIO’s financing supports Fondo de Desarrollo Local (“FDL”) in further growing its loan portfolio and increasing its capacity to provide financing to micro-entrepreneurs in Nicaragua.

The loan contributes to improving financial access to those at the bottom of the pyramid, while stimulating economic growth and generating jobs. BIO’s role in this project  is :

(1)    Enhance financial inclusion in a focus and Lower Middle Income Country (LMIC) which still exhibits high income inequality and poverty levels, by facilitating the financing of micro entrepreneurs.

(2)    Promote development in the SME/microfinance sector, the loan will allow FDL to provide increased funding to microfinance companies who are presently under-banked, which in turn will support the creation of employment and livelihood opportunities for a broader portion of the population.

(3)    Support and further strengthen the Nicaraguan Microfinance Industry in its recovery process after the 2009-2010 crises. The weakness of the financial sector hampers the development of the economy, particularly in the SME sector. In funding FDL, BIO will contribute to the mobilization of funds to Nicaragua, as is known crisis has impacted the financial sector, in consequence investors’ drive away making even harder for MFIs to obtain funds.

(4)    Support one of the pioneer MFIs in Nicaragua with a strong reputation and proved leadership in the local market with a strong social commitment and focus in rural customers.

FDL´s main office is in Managua. It has a presence in 15 of the 16 departments of Nicaragua. It currently employs 545 people (54% of the staff are women) distributed in 37 agencies. FDL has 58,104 customers,

In addition, FDL has the support of the NITLAPAN, an institute specializing in research on and the creation and publicizing of new local rural and urban development models and methodologies. Its main areas of study are poverty, microfinance, agriculture, SMEs development and environmental care.

FDL also has a “Development Portfolio” which offers innovative financial products with a positive impact on the environment by protecting the biodiversity while supporting the economic activities in the rural sector. These products have been developed and implemented with the assistance of NITLAPAN.

FDL is preparing to transform into Financiera, in order to be able to offer deposit products to the clients and as a result of this diversify the sources of funding.


  • Geïnvesteerd bedrag (€):

    USD 4 million

  • Ondertekening van het contract :


  • Aard van de investering :

    Senior loan

  • Effecten op de ontwikkeling :

    • 1 — Improve access to financial services
    • 2 — Enhance financial inclusion
    • 3 — Job creation
    • 4 — Support the Microfinance industry in Nicaragua