Latin American Challenge Investment Fund II

pending

_x000C_The project proposes to build on LA-CIF’s excellent 7-year track record in Latin American microfinance by creating a multi-currency capital structure to provide local currency resources to MFIs and also to attract local investors. The project falls directly under IFC’s priority to boost both investment volume and development impact, which is through promoting collective investment vehicles. IFC’s participation in this project will lead to a pioneer bond issue through a strategic partner which will issue PEN and MXN denominated bonds to Mexican and Peruvian private investors. The project will be executed in close collaboration with IFC’s Treasury Department. The primary goal is to demonstrate that well managed Latin American MFIs can access private sources of capital and attract sophisticated investors. LA-CIF II’s objectives are to: - structure and mobilize additional local currency financial resources for MFIs; - attract large local pension funds and banks to the microfinance sector; - generate adequate returns for investors; - diversify risk sharing among a larger number of investors and investees; and - manage a regional portfolio of up to 23-25 MFIs.