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The Investment Fund for International Development (FONIDI): a source of capital funds to be used for financing institutions or specialized funds within the financial sector of the social economy of countries in economic development or transition.
Main objectives:
- Establish commercial links with cooperative, mutual or social economy institutions in countries in economic development or transition
- Provide financial leverage for these institutions and for investment funds aimed at these markets by obtaining financing from other sources
- Improve access to financial services and the quality of life of local communities
- Contribute to improving the governance of financial institutions.
Types of financing:
- A capital investment in the form of ordinary or privileged shares, options, shares in limited partnerships or cooperatives
- Financing in the form of loans or debentures.
General conditions:
- An investment horizon of five to seven years
- A capital injection or a loan ranging from CAN $500,000 to 1,500,000
- Minority participation in the share capital of 10% to 40%.
Criteria:
- A history of operations or a high profile in the sector
- Start-up phase has already been completed
- Not listed on a stock exchange
- Not a project with a predetermined duration.
Partner supported by FONIDI: Findesa (Nicaragua)
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ASP Financiera (Mexico)
In May 2006, DID, by means of the FONIDI fund, loaned CAN $600,000 to ASP Financiera, an institution currently serving nearly 7000 clients in northwestern Mexico. As a result, ASP Financiera will be able to maintain growth through the creation of new branches and widen outreach. This DID investment is also a means for stimulating better governance of ASP Financiera, a factor that will play a critical role when the institution opens up its capital structure to other investors as planned.
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SOLIDUS Fund (Latin America)
In December 2006, again by means of the FONIDI fund, DID invested in the Solidus fund which supports community finance institutions in Latin America. This fund provides quasi-equity financing which allows greater freedom for the financial institutions receiving support and enables them to innovate in terms of the products offered. Through its contribution to the Solidus fund, DID joins its efforts to those of the international investment community that is participating in the growth of the financial sector in developing countries.
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