The partners in the MIGROF are The Inter-American Development Bank’s Multilateral Investment Fund (FOMIN), the Inter-American Investment Corporation (IIC), the Corporacion Andina de Fomento (CAF), along with the private investors Banamex, the Norwegian Microfinance Initiative, ACCION International and BlueOrchard, a Switzerland-based microfinance investment management company
The new facility will offer medium-and long-term financing both in local currency and in US dollars, targeting 35% of the total financing to be provided in local currencies. It is expected to begin its lending activity in following weeks.
Earlier, FOMIN and the IIC took a leading role in structuring the microfinance facility and defining its lending strategy. In September 2009, the partners agreed to establish the Microfinance Growth Fund, managed by BlueOrchard Finance, and US-based Overseas Private Investment Corporation (OPIC) pledging a $125m loan for its operation.
The new facility will be funded by OPIC with $125m, FOMIN will provide $10m in equity, the IIC will contribute up to $5m, and CAF will invest up to $10m.
Luis Alberto Moreno, president of Inter-American Development Bank’s and chairman of the board of the IIC, said: “A great project has become something real, we are open for business. MIGROF will fuel the engine of growth in microfinance, an industry serving millions of entrepreneurs throughout the region.”
Manuel Medina-Mora, chairman and CEO of Citi Latin America and Mexico, said: “We are pleased to join this initiative to further expand microfinance in the region. By contributing to the Microfinance Growth Fund, Banamex and Citi are furthering their commitment to promoting development in Latin America, as well as leading the way for other Latin American investors to contribute to this initiative.”
