The Agence Française de Développement (AFD), a French public development finance institution, has donated EUR 1.8 million (USD 2.4 million) in technical assistance (TA) funding to Incofin Rural Impulse Fund II. Valued at EUR 120 million (USD 173 million), Rural Impulse Fund II is one of two funds managed by Belgium’s Incofin Investment Management that invest in rural microfinance institutions [1]. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.
The funding from AFD will go to a TA facility that has been built in parallel with the Incofin Rural Impulse Fund II with the intent of improving operational, financial, strategic and organizational aspects of investee microfinance institutions. AFD, through the grant, looks to support microfinance institutions in “Priority Solidarity Zones” identified by the French government, which are Southeast Asia; the Mediterranean Region; and the African, Caribbean and Pacific Group of States (ACP). The TA interventions funded by AFD will be implemented between 2012 and 2014 [1].
In 2010, AFD reportedly invested approximately EUR 6.8 billion (USD 9.6 billion) in the Southern Hemisphere providing primary schooling for 13.4 million children, improving drinking water supplies for 33 million people and disbursing microloans to 700,000 people.
By Natalie Baer, Research Associate
About the Incofin Rural Impulse Funds (RIF): The Incofin Rural Impulse Funds (RIF) were launched by Incofin Investment Management to invest in rural microfinance institutions (MFIs) that are deemed commercially viable. The two funds include Rural Impulse Fund I and Rural Impulse Fund II. They target both farm and non-farm populations in small towns and villages. The funds invest primarily through loans, though they make equity investments and guarantees as well. As of October 31, 2011, Rural Impulse Fund I has outstanding investments of EUR 25.7 million (USD 35.9 million) and a fund size of EUR 30 million (USD 38 million), while Rural Impulse Fund II has outstanding investments of EUR 33.1 million (USD 46.0 million) and a fund size of EUR 120 million (USD 173 million).
About Incofin Investment Management (Incofin IM): Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. As of June 2011, Incofin manages six facilities with total outstanding investments of USD 425 million in 39 countries.
About Agence Française de Développement (AFD): Established in 1941, Agence Française de Développement (AFD) is a bilateral development finance institution whose public mandate is to finance development according to the overseas development assistance policies of the French government. In 2011, AFD reportedly committed approximately EUR 7 billion (USD 9.2 billion) to financing aid activities in developing and emerging countries and the French Overseas Communities. These investments involved providing primary schooling for 13.4 million children, improving drinking water supplies for 33 million people and disbursing microloans to 700,000 people.
Sources and Resources:
[1] Incofin Press Release, “AFD grants 1.8 million EUR to TA facility of Incofin IM’s Rural Impulse Fund II.”
MicroCapital Universe Profile: Incofin Rural Impulse Funds (RIFs I and II), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Funds+%28RIFs%29
MicroCapital Universe Profile: Incofin Investment Management, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29
MicroCapital Universe Profile: Agence Francaise de Developpement (AFD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Agence+Francaise+de+Developpement+%28AFD%29
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