LOCFUND LP is a Local Currency Fund specialized in loans to microfinancing institutions in Latin America and the Caribbean. The fund started operating in 2007 and it completed its work in March of 2015. This fund was managed by BIM Ltd., an impact investments manager based out of Bolivia, with offices in Costa Rica, Peru and Nicaragua. LOCFUND LP promoted the development of the microfinance industry throughout the region through local currencies loans, which helped MFI’s reduce their currency exchange risk, which in turn helped them prevent the transference of such risk to their own clients. Additionally, through its Technical Assistance Component (LOCFUND-TSF) the fund was able to support MFI’s in the development of many areas by financing consultancies entirely or partially.

Key elements that allowed the positive results and impact LOCFUND had, include:

• Local currency loans and therefore exchange rate risk management.
• Prioritizing funding to small and mid-size MFI’s that have limited access to capital markets.
• Providing technical assistance in the areas of Asset and Liability Management, as well as risk management.
• Investors and managers committed to the development of the microfinance industry in the region.
• Local presence, through BIM’s offices in Bolivia, Peru, Costa Rica and Nicaragua.
• BIM’s experience as part of the Panamerican Investments holding, which has over $US 500 million AUM.

LOCFUND provided services to 45 MFI’s, which in turn provided support to more than 900,000 final clients in 13 countries in Latin America and the Caribbean. Out of the total, more than 50% were women, and approximately 44% came from rural areas. During its 8 years of existence, LOCFUND executed 99 loan operations, totaling $US 69 million disbursed.

LOCFUND’s investors include:

• BID/FOMIN
• FMO
• NORFUND
• CAF

• Responsbility
• Gray Ghost
• BIO
• Hyos Invest Holding

Upon the completion of the investment period (December 2013), LOCFUND’s loans to MFI’s translated to a total of 92,521 credits issued to final clients. Additionally, LOCFUND helped MFI’s gain access to new international and local financing sources. On the other hand, LOCFUND –TSF provided technical assistance to more than 100 MFI, through workshops, seminars and other forms of support.

| LOCFUND: Disbursements

| LOCFUND: Number of Disbursements

LOCFUND had operations in several MFI’s in 13 countries in Latin America and the Caribbean. Among these, the ones with the most activity were Peru, Ecuador, Bolivia, Honduras and the Dominican Republic.

| LOCFUND: Disbursements per Country

During its existence, LOCFUND was able to develop skills to detect, evaluate, approve and disburse 15 annual loans to MFI in Latin America and the Caribbean.

The number of small business owners benefited by MFI’s under LOCFUND’s umbrella reached 1,856,552. Out of this number, 92,521 of them directly received funds from LOCFUND.

| LOCFUND: Assisted Final Clients

Out of the total final clients reached by LOCFUND, 60% were women and 50% came from rural areas. In addition to this, the average loan provided by LOCFUND-funded MFI’s stood at around $US 1,000, providing evidence of the commitment the institutions have with low-income clients and the success of LOCFUND’s social goals.