Desjardins Group (www.desjardins.com), in collaboration with its component, Développement international Desjardins (www.did.qc.ca), announces creation of a new investment fund aimed at developing the microfinance sector in emerging or developing countries.
The Desjardins Fund for Inclusive Finance is intended primarily to support the creation and strengthening of microfinance institutions such as financial centres for entrepreneurs and to deliver support for institutions operating in the field of microinsurance, pension funds and housing finance in addition to sector funds aimed at financing a wide range of microfinance institutions. Equity investments made through the fund will improve governance in the institutions being financed and enable these institutions to eventually tap international financial markets.
“This powerful tool will make a major contribution to disseminating the business model, values and experience available from Desjardins in the area of inclusive finance resulting in greater access by the disadvantaged to safe, diversified financial services tailored to their needs,” explained Anne Gaboury, President-Chief Executive Officer of Développement international Desjardins.
With initial funding of 5 million dollars and eventual full funding of 10 million dollars, the Desjardins Fund for Inclusive Finance will have a ten-year term with a possible two-year extension.
The Desjardins Fund for Inclusive Finance replaces the international development fund, FONIDI (Fonds d’investissement pour le développement international), which began operations in 2003 and was funded by various Desjardins Group components. The investments carried out by the new fund will enable microfinance institutions to expand either by diversifying the services they provide, widening the territory they cover or adding new segments of their community as clients.