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

Partners
Luxembourg Microfinance and Development Fund (LMDF)  and 44 MFIs in 20 countries

Outstanding loans in Q1 2018
€ 25,3 million 

Contact

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 €1,5 million. 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

April 2018

The portfolio in figures - First quarter of 2018

  • 44 MFIs advised by ADA and financed by LMDF in 20 countries - El Salvador (Optima, Padecoms), Nicaragua (Fundeser, Fundenuse, MiCredito), Guatemala (Adisa, FUNDAP, REFICOM), Honduras (AMC Honduras, Fama, IDH, Pilarh), Haïti (ACME), Peru (Arariwa, CrediFlorida, Edpyme Alternativa, Fondesurco, Norandino, Prisma), Ecuador (Faces, Insotec), Cambodia (Maxima, Chamroeun, IPR, SAMIC), Indonesia (Komida), Niger (Asusu), Benin (Comuba, Pebco), Burkina Faso (ACEP, PAMF BF), Ivory Coast (PAMF CI), Morocco (Al Karama, AMSSF), Argentina (FIE, OMLA, ProMujer), Colombia (ECLOF), East Timor  (KIF), Kenya (Letshego), Kyrgyz Republic (Bailyk Finance, OXUS, Salym), South Africa (SEF) ;
  • 54% of our presence is in Latin America;
  • Outstanding loans: EUR 25 million.
Breakdown by subcontinent

February 2018

ADA is supporting ACEP Burkina Faso!

After a strong collaboration with ACEP group on risk management through technical assistance, ADA, through the investment fund LMDF, financially supported ACEP Burkina in February with a double operation of a 300K EUR subordinated loan and a 450K EUR senior loan. The subordinate loan aim to reinforce equity of ACEP Burkina in order to support its fast growth, while the senior loan aim to finance its portfolio growth needs.

Among the 25 poorest countries of the world and a 17 years old average population, Burkina Faso is a country with a very high rate of unemployment especially among the youngest. Most of activities run by active population are informal and this population is often the target of a great number of MFIs in form of cooperatives or association that use to serve them by offering financial services in a more or less professional way.

In this panorama, ACEP Burkina stands as a professional MFI serving formal or informal SME by a specialized and dedicated methodology based on higher amounts and one flexible credit product especially dedicated to SMEs. ACEP Burkina belong to an international network of MFIs operating in five African countries: Senegal, Cameroon, Madagascar, Niger and Burkina Faso and leaded by ACEP International. ACEP’s philosophy is to solely target SMEs with the purpose to contribute to local economic development through creation of jobs, above all for young people, and boosting local production with a high value added.

ACEP Burkina Faso

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

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