CASEIF IV (FMO-58648)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
Central America Small Enterprises Investment Fund (CASEIF IV)
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS Oct 7, 2020

Disclosed by Bank Sep 24, 2020


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Project Description

WHO IS OUR PROSPECTIVE CLIENT?

The Central America Small Enterprises Investment Fund (CASEIF IV) aims to provide growth capital to small and medium companies (SMEs) in Central America, Panama, Dominican Republic and Colombia. CASEIF IV targets to raise USD 75m in commitments and will be managed by Lafise Investment Management (LIM), a fund management company resulting from a joint venture between NORFUND and LAFISE Group. This represents a continuing relationship for FMO, having committed to the predecessor fund managed by LIM, CASEIF III, in 2014.

WHAT IS THE FUNDING OBJECTIVE?

LIM intends to promote development and fight poverty by enhancing sustainable growth of private sector businesses. The investment strategy of CASEIF IV will be in line with the successfully implemented strategy of CASEIF III. CASEIF IV will provide mainly mezzanine and to a smaller extent equity financing to a diversified portfolio of SMEs in Central America, Panama, Dominican Republic and Colombia. This geographical focus is in line with the presence of LAFISE Group's local offices. While LIM targets a multi-sectoral portfolio, the key focus will be on sectors such as agroindustry, food and beverage processing where LIM has gained considerable expertise. CASEIF IV will target a portfolio of 10-12 investees with an average ticket size of USD 6m.

WHY DO WE WANT TO FUND THIS PROJECT?

An investment in CASEIF IV aligns strongly with FMO's strategy to deepen relationships with existing partners and contribute to improving access to finance for SMEs in the Central American region.

ENVIRONMENTAL AND SOCIAL RATIONALE

The E&S categorization of CASEIF IV is B based on the pipeline and on LIM's strategy. LIM has demonstrated a proven commitment towards E&S, undertakes rigorous ESG due diligence on its investees and ensures risk mitigation through an action plan aligned with the IFC Environmental and Social Performance Standards.

Investment Description
  • Netherlands Development Finance Company (FMO)
Contact Information

ACCESS TO INFORMATION

As part of FMOÕs Òex-ante disclosureÓ (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism