Une offre en conseil et en financement durable pour les IMF au moyen d’un fonds : LMDF

Project objectives
To support and to help MFIs in their fundraising

Areas of intervention
Latin America, South-East Asia, Maghreb, South-West Africa

Project managers

Partners
37 MFIs in 17 countries

Outstanding loans in 2016
€ 17,7 million 

Providing advice and sustainable financing for MFIs through a fund: the LMDF

MFIs in the south require financing and advice regarding fund raising. The LMDF (Luxembourg Microfinance and Development Fund), which is an investment fund with a social purpose (in the form of a regulated SICAV), provides ADA with an exclusive service dedicated to microfinance institutions (MFIs). Rather than being limited to the simple provision of a loan, the financial support takes the form of an enduring and special relationship between ADA and the MFI. 


Providing advice for MFIs is an essential service

Do the MFIs which have applied for funding meet with the conditions of eligibility set by the LMDF? Does the application for funding correspond appropriately to the MFI’s needs? These are just a few of the many questions which ADA’s investments experts have to answer. Finally, looking beyond the strictly financial aspects, we accord particular attention to the governance of the MFI, its operational profile and its risk management.

Sarah Canetti, who is the ADA investments officer, shares her view on the work carried out upstream by her team and the need to provide professional and quality advice to MFIs. 

Long-term financing: LMDF and co-financing

LMDF (Luxembourg Microfinance and Development Fund) is a Luxembourg investment fund established by ADA. Its main aim is to facilitate access to a more responsible form of financing by creating long-term relationships between investors, the MFIs and their clients. The fund is open to Tier 2 and 3 MFIs, as well as to non-banking institutions, private enterprises, cooperatives and NGOs. It guarantees the funding of an MFI for a maximum of five years (this term is renewable) and provides loans up to a maximum of one million EURO. This funding provision opens up new prospects and enables MFIs to aspire to launch long-term projects, whilst at the same time ensuring their financial stability.

If necessary, and according to the needs identified by the investment team, ADA may provide complementary funding so as to directly co-finance certain activities carried out by the MFI. One example of the co-financing is the payment of all, or part, of the costs of the assessments carried out by rating agencies specialised in microfinance. 


 

Actualité

Meet our investment team at Foromic 2016!

u3 foromic

October 2016

This year the main actors of the microfinance and entrepreneurship sector in Latin America and the Caribbean will meet on one of the paradisiac tropical islands of the so called American Mediterranean Sea.

Foromic, the most important annual event of the sector in this region, will be held from October 24 to 26, 2016 in Montego Bay, Jamaica.

ADA will be there, represented by the three members of its investment team: , head of investment services, , investment officer and , senior investment officer.

If you also participate in the event and you want to meet ADA's people, send them an email with a request for an appointment.

Foromic is both a place of exchange of innovations and advances in the sector.

Different topics will be discussed:

  • Money Transfer Technology;
  • Policies and Regulation for Financial Inclusion;
  • Remittances;
  • Revenue-Based SME Finance;
  • Emerging Platforms for Digital Finance;
  • Persion Savings;
  • Agent Networks;
  • Microinsurance;
  • Women's Entrepreneurship;
  • Youth Development Programs;
  • Green and Rural Finance.

Lear more about the event on Foromic's website.

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