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 manager

40 MFIs in 18 countries

Outstanding loans in 2016
€ 19 million 


Providing advice and sustainable financing for MFIs

Through a social investment fund, ADA has financing solutions for microfinance institutions (MFI) that they need to ensure their growth. For ADA, financial support from an institution is part of a long-term partnership complemented by a technical assistance program.

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. 


December 2017

The portfolio in 2017

​In 2017, under the advice of ADA, the Investment Committee of LMDF approved the financing of 13 new MFIs:

  • Reficom in Guatemala
  • ​Eclof in Colombia
  • FIE Gran Poder, OMLA and Pro Mujer Argentina in Argentina
  • Fundenuse in Nicaragua
  • Comuba in Benin
  • Salym Finance and Oxus in Kyrgyzstan
  • FAMA and IDH in Honduras
  • Norandino in Peru
  • SEF in South Africa

March 2017

The portfolio in figures - Fourth quarter of 2016

  • 38 MFIs advised by ADA and financed by LMDF in 17 countries - El Salvador (AMC, Optima, Padecoms), Nicaragua (Fundeser, Micredito, Pana Pana, ProMujer Nicaragua), Guatemala (Adisa, ASDIR, Fundap), Honduras (AMC Honduras, ODEF, Pilarh), Haïti (ACME), Peru (Arariwa, CrediFlorida, Fondesurco, Prisma), Ecuador (Faces, Insotec, Maquita), Cambodia (Maxima, Chamroeun, IPR, SAMIC), Philippines (KPS Seed), East Timor (KIF), Indonesia (Komida), Niger (Asusu), Mali (PAMF, Soro Yiriwaso), Benin (Pebco), Burkina Faso (PAMF BF), Côte d'Ivoire (PAMF CI), Morocco (Al Karama, AMSSF, INMAA) ;
  • 30% of our presence is in Latin America;
  • Outstanding loans: EUR 18 million ;
  • The credit portfolio of MFIs reached  : EUR 580 million;
  • 40,400 entrepreneurs directly affected;
  • Percentage of female clients: 74%;
  • Outstandings of the average loan: EUR 1,172;
  • Sectors of activity: agriculture 34%, crafts 9%, services and small shops 45%, other 12%;
  • Total number of MFI employees: 8,546.

In March 2017, under the advice of ADA, the Investment Committee of LMDF approved the financing of three new MFIs:

  • Comuba in Benin;
  • Pro Mujer in Peru;
  • Fundenuse in Nicaragua.


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