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Following the success of LOCFUND (the local currency Microfinance fund for Latin America) established in 1997, LOCFUND II was set up in 2013. Norfund, FMO, BIO and MIF (Interamerican Development Bank) are the anchor investors in both the first and the second fund.

The innovation in this second fund is that it will be double the size of the first fund with USDM 60, of which half of it will be debt. Therefore, Norfund's equity will mobilize debt on a ratio of 1:1. The fund will still continue to focus at Tier 2, 3 MFIs (Small and Medium MFIs). Local currency loans are becoming more common within the larger institutions, but are still relatively non-existent within the second tier MFIs which are LOCFUND IIs target. Finally, it will also help some of the MFI’s which have grown quickest to access the local bond markets.




  • Company: LOCFUND II
  • Sector: Micro credit
  • Investment year: 2013
  • Instrument: Fund equity
  • Committed amount (MNOK): 53,2