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Microfinance fund MiGroF plans to disburse US$50mn-75mn this year to microfinance institutions (MFIs) in Latin America, Ann Miles, managing director for BlueOrchard Finance USA, told BNamericas.
The US$140mn fund was launched in September last year and is managed by BlueOrchard, a Geneva-based microfinance investment manager.
MiGroF was set up to provide medium- and long-term financing for MIFs in local currency and US dollars.
The fund disbursed US$32mn last year to 13 MIFs, and Miles said she expects between 30 and 40 MIFs to receive financing this year.
Most of MiGroF's disbursements will go to MIFs in Bolivia, Ecuador, Colombia, Mexico and Peru, but the fund will also target less developed microfinance market such as Argentina, Brazil, Uruguay and Central America, said Camilo Méndez, regional head of investment analysis and managing director of BlueOrchard's office in Lima, Peru.
The fund will be in place for seven years and could be increased to US$250mn.
MiGroF's capital comes from a long list of organizations, including the US government's Overseas Private Investment Corporation (OPIC), the IDB's Multilateral Investment Fund (MIF), the Inter-American Investment Corporation (IIC), the Andean Development Corporation (CAF), Accion International, Norwegian Microfinance Initiative and Mexico's second largest bank, Banamex.