LUXEMBOURG MICROFINANCE AND DEVELOPMENT FUND II

Promoter – Financial Intermediary

APPUI AU DEVELOPPEMENT AUTONOME,INVESTING FOR DEVELOPMENT SICAV - LUXEMBOURG MICROFINANCE AND DEVELOPMENT FUND

Location

• Africa, Caribbean and Pacific

Description

Investment in Class B Shares issued by the Luxembourg Microfinance and Development Fund (LMDF), a specialised microfinance investment vehicle targeting Tier 2-3 microfinance institutions in developing countries including the Africa, the Caribbean and Pacific (ACP) region.

Objectives

LMDF's primary objective is to address poverty and inequality by facilitating the growth of emerging Microfinance Institutions (MFIs) that address the financial needs of marginalised communities and individuals in developing countries in Africa, Asia and Latin America. LMDF focuses on Tier 2 and Tier 3 MFIs, because they tend to reach into poorer segments of clients (with a focus on women, youth and rural populations) by targeting populations with lower loan amounts, and tend to operate in regions less developed in terms of financial inclusion. In terms of instruments, the Fund provides debt (majority of investments), equity and quasi-equity investments.

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

EUR 5 million

Total cost (Approximate amount)

EUR 50 million

Environmental aspects

As a fund manager investing in inclusive finance, LMDF has a long-term interest and has included Environmental, Social and Corporate Governance (ESG) issues in its investment policies and reporting. If MFIs have not established environmental policies, LMDF will encourage them to better balance their lending practices with the need for a healthy environment.

Procurement

N/A

Status

Signed - 15/12/2020