In August 2021, OeEB signed a USD 15 million credit line with Locfund Next. The fund invests in small and medium-sized microfinance institutions ("MFIs") in Latin America and the Caribbean.
|Project name||Locfund Next. L.P.|
|Region||Central America and the Caribbean|
|Service||Investment Finance / Business Advisory Services|
|Project volume||USD 15 million|
|Project partner(s)||Locfund Next, L.P.|
The fund invests in small and medium-sized microfinance institutions that do not have access to long-term financing sources themselves. The end clients of these MFIs are often low-income individuals without access to regulated financial institutions. The aim is to reach poorer populations, especially in remote and rural areas. An additional focus is placed on supporting female end clients in their economic activities.
Locfund Next provides loans in local currency as well as technical support, thereby strengthening microfinance institutions that subsequently enable a way out of poverty. The fund's regional focus includes among others Honduras, Bolivia, Guatemala, Mexico and Peru.
In March 2022, an additional Technical Assistance (TA) project was signed with Locfund Next for USD 280,000. As a result of this TA, the know-how transfer in the areas of digital transformation, access to capital markets, asset and liability management, risk management as well as environmental and social performance management with a focus on climate and gender is supported.