Montreal (Quebec), 27 November 2025 – Canada’s bilateral Development Finance Institution, FinDev Canada, announces a USD 20 million loan to Locfund Next L.P. (or Locfund Next) to support microfinance institutions (MFIs) and financial inclusion in Latin America and the Caribbean.
FinDev Canada’s investment will enable Locfund Next to address critical funding gaps by providing local currency funding, helping MFIs mitigate foreign exchange risks, and allocating additional resources to its operations.
Locfund Next will apply a climate-lens approach to its operations by directing 100% of the proceeds to MFIs offering climate-finance loans, while maintaining its microfinance lens. This contribution will advance climate action by helping institutions align with climate goals through the initiatives of their microentrepreneur clients.
Additionally, Locfund Next is committed to advancing gender equality, based on its track record of exceeding its gender-related commitments. It does so by implementing a gender-lens approach in its lending activities, and by addressing significant gender gaps in account ownership and access to formal financial services.
Micro, small and medium-sized enterprises (MSMEs) play a vital role in strengthening economic development in Latin America and the Caribbean, further contributing to job creation and poverty alleviation. However, formal MSMEs in the regions face an annual financing gap of USD 1.2 trillion. Private sector engagement is therefore critical to help bridge this gap and support economic growth.
This is FinDev Canada’s second investment with Locfund Next. The first investment enabled Locfund Next to provide much-needed local currency financing, leveraging FinDev Canada’s technical assistance and advisory offering, and ensuring MFIs can support underserved populations and effectively manage foreign exchange risks.
“This new investment in Locfund Next is a proud continuation of our partnership, reflecting our shared commitment to supporting inclusive and sustainable development in emerging markets and developing economies by addressing critical challenges facing MFIs. Through our combined efforts, we can advance climate and nature action, strengthen gender equality, and support local market development, three investment priorities for FinDev Canada,” said Paulo Martelli, VP and Chief Investment Officer, FinDev Canada.
“FinDev Canada’s investment not only demonstrates its commitment to financial inclusion in Latin America and the Caribbean, it also reinforces the strong partnership we have built together. Over the past four and a half years, FinDev Canada has become one of our most supportive investors and a trusted ally of Locfund and BIM Ltd. in advancing our shared development goals,” said Daniel Maldonado, Investor Relations Officer at BIM Ltd.
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and advisory, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments. Find out more about FinDev Canada at www.findevcanada.ca.
About Locfund Next
Locfund Next is the third generation of the Locfund, a regional vehicle that provides local currency financing to Tier II and Tier III microfinance institutions (MFIs) across Latin America and the Caribbean. With more than 55 active investees, Locfund Next currently reaches the largest number of MFIs in the region, positioning it as a leader in its segment. Through its multi-product offering, ongoing technical assistance, and long-term engagement with all actors, Locfund Next operates as an integrated financial inclusion platform helping to narrow the region’s financial inclusion gap. Find out more at Locfund Next.
Media Contact
FinDev Canada: Media@findevcanada.ca