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

Project objective
Support and assist MFIs in their fundraising

Areas of intervention
Latin America, Southeast Asia, Central Asia, Africa

Project manager
Laura Foschi

Key figures in Q2 2019
- 51 MFIs financed in 24 countries
- outstanding loans (end of June 2019): €30.9 million
- average loan: €1,554
- 54,382 microentrepreneurs directly affected, 80% of them women
- 70% of rural customers
- 75% of the MFIs financed receive technical assistance adapted to their needs

Partner

LMDF

Contact

Portraits

Sustainable funding for your MFI


Through the Luxembourg social fund LMDF, ADA offers 2 types of funding for Tier 2 and 3 MFIs located in Africa, Latin America, Southeast and Central Asia. In addition, ADA can provide technical assistance.


Since 1994, ADA has been committed to strengthening the financial inclusion of population groups excluded from the conventional banking sector through tailored financing and technical assistance for microfinance institutions (MFIs), with an emphasis on forging long-term partnerships.
Thanks to a socially responsible investment fund, created by ADA in 2009, the Luxembourg Microfinance and Development Fund (LMDF), ADA has funding solutions for the growing MFIs.
 

Financial services for MFIs....

ADA offers 2 types of funding for Tier 2 and 3 MFIs located in Africa, Latin America, Southeast and Central Asia:

  1. Senior debt: an amount between USD 0,2 and 1,8 million, granted in local currency, USD or EUR, with a maximum term of 5 years, at the market rate.
  2. Subordinated debt: an amount between USD 0,2 and 1,8 million, granted in local currency, USD or EUR, with a term of between 5 and 7 years, at the market rate.
     

...combined with non-financial services

Other than offering financial services, ADA can propose:

  • support, listening and follow-up from its team during the entire funding cycle;
  • tailor-made technical assistance program tailored to the needs of MFIs to improve their performance: this programme, called ADA 3T (Tools, Trainings and Technical Assistance) includes, as its name suggests, management tools, various training courses (financial and social performance, risk management, agricultural finance, digital finance, etc.) and technical assistance. Ultimately, this support enables MFIs to achieve their social goals to attract an ever-increasing number of investors.

Discover the ADA 3T offer

ADA 3T

(The offer is only applicable to certain geographical areas)

 


LMDF and co-financing

LMDF (Luxembourg Microfinance and Development Fund) is a Luxembourg investment fund established by ADA in 2009, which 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.

ADA has a dedicated team which provides investment advice to LMDF. Its work is, first of all, about identifying MFIs with a strong social and financial performance matching the profile sought by LMDF amongst the small MFIs (Tier II and III). To this purpose, the team undertakes prospecting missions in the field, to meet with MFIs or to attend events (conferences, Investor Fairs, …). If an MFI meets the eligibility criteria, ADA performs a preliminary audit in the field, called due diligence, to check the MFI’s financial figures and to meet with its managers and clients. Once it is back in Luxembourg, ADA submits the application for financing to the LMDF Committee, which decides whether to invest in the MFI through senior or subordinated loans. The time between application and grant varies from 3 to 6 months depending on access to information and compliance with eligibility criteria.

ADA may also 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.


Eligibility criteria for funding

Conditions for funding

Do you think you meet all the eligibility requirements within your MFI? Fill out the funding application form below and send it to:

I fill out the financing request form for MFIs


The 7 steps in the process of obtaining funding

The 7 steps in the process of obtaining funding


"For greater impact with our funding"
Laura Foschi, Executive Director at ADA

Laura Foschi

"With more than 50 microfinance institutions financed in 25 countries, ADA, through the LMDF Fund, becomes a relevant partner of choice for MFIs. It should be noted that ADA’s role is not limited to the provision of financial resources. We are committed to our partners and build our relationship through continuous monitoring. Our team remains at your entire disposal to jointly implement long-term actions.

IIn addition to financing and monitoring, we can and want to offer tailor-made technical assistance to our partners when the need arises. 75% of the MFIs we fund benefit from this personalized support and/or capacity building that we define together. All our will and vision is focused on providing institutions with the necessary means (financial or technical) to act.

We operate in four major regions: Africa, Latin America, Southeast Asia and Central Asia. This diversification is a strength and an opportunity. It demonstrates our success, our aspirations and our capabilities. ADA, with LMDF and the support of the Government of Luxembourg, uses the experience of one of the world’s leading financial centres to support socially responsible MFIs, which are the main actors in the fight against poverty, and for financial inclusion."


Quito

Providing advice and sustainable financing for MFIs

Through a social investment fund, ADA has financing solutions that microfinance institutions (MFI) 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.

Discover the beneficiaries of the investment

Read more
News

November, 2019

The portfolio in a few figures - Second quarter 2019

51 MFIs advised by ADA and financed by LMDF in 24 countries:

  • Latin America (56% presence)
    Mexico (SOFIPA), El Salvador (Optima, Padecom), Nicaragua (Fundeser, Fundenuse, Micrédito), Guatemala (ADICLA, ADISA, Fundap, Reficom), Honduras (AMC, FAMA, IDH, Pilarh), Haïti (ACME, Finca Haïti), Peru (EDPYME Alternativa, Norandino, Prisma), Ecuador (COAC 4 de Octubre, Faces, Insotec), Colombia (ECLOF, Finamiga), Argentina (FIE, OMLA, ProMujer).
  • Asia (16% presence)
    Cambodia (Maxima), East Timor (Moris Razik), Indonesia (Komida), Kyrgyzstan (Bailyk Finance, Oxus Kyrgyzstan, Salym, Trust Union), Kazakhstan (Arnur, Bereke), Tajikistan (Furuz, Oxuxs Tajikistan).
  • Africa (28% presence)
    Benin (Comuba, Pebco), Burkina Faso (ACEP BF), Morocco (AMSSF), Kenya (Letshego), Ghana (Sinapi Aba, Baobab), South Africa (SEF), Uganda (EBO, EFC Uganda, UMF), Sierra Leone (LAPO SL, ACTB S&L).

Outstanding loans: €30.9 million

Breakdown by subcontinent - Q2 2019

November, 2019

ADA at Foromic 2019 in the Dominican Republic!

Our investment managers for Latin American, Eliseo Carrión and Daniela Lafortezza, were holding the ADA stand at Foromic, which opened its doors from October 30 to November 1 in Punta Cana, Dominican Republic.

Foromic, the flagship event in Latin America and the Caribbean on issues related to financial inclusion and enterprise development, returned this year for its 22nd edition.

The organized activities show how innovation, driven by emerging technologies, is transforming the concept of inclusion in financial services, entrepreneurship and the development of new skills.

This year, Foromic also offered innovative ways to develop its network, experiment with innovation and make contacts, all in a single space.

For more information, visit the Foromic website: https://events.iadb.org/calendar/event/20252?lang=fr



31, January, 2019

Due diligence in Uganda

Olivia Fechner, our Nairobi-based Investment Officer, was in due diligence with EFC Uganda, a microfinance institution in Kampala focused on micro and small enterprises and missing middle.

Olivia EFC
ACEP Burkina Faso

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