Incofin is one of three portfolio managers of the Global Gender-Smart Fund, which was founded last year to address the $1.7trn gender gap in financial services in emerging markets.
Incofin Investment Management has announced a three-year, $10m (€9.2m) debt facility in Nicaragua-based lender Banco Ficohsa Nicaragua. The Belgian impact-driven fund manager did so in its capacity as portfolio manager of the Global Gender-Smart Fund (GGSF).
Banco Ficohsa Nicaragua will use the funds to provide loans to small and medium-sized enterprises, with a strong focus on businesses led by women. Access to finance will not only give the local economy a boost, but will also help close the gender gap, both Incofin and the GGSF said. Nicaragua, the biggest country in Central America, is one of the region’s poorest, according to the World Bank.
“It is crucial for the financial sector to champion initiatives that amplify the role of women in the economy,” said Cecilia Delgado, senior investment manager at Incofin.
Delgado went on to say Incofin was looking forward to investing in “women-led businesses, creating meaningful social and economic transformation, particularly for underserved women entrepreneurs”.
Gender gap
Founded in January last year, the GGSF claims to be the world’s largest gender-lens investment fund and it’s structured as an evergreen blended finance vehicle. Its main aim is to help close the $1.7trn gender gap by providing financial services to underserved women, women-owned and women-led businesses in developing markets.
The fund was formed out of the Microfinance Enhancement Facility (MEF), which was set up a year after the global financial crisis of 2008, initially as an emergency response vehicle. By the end of 2023, the MEF had supported over 320 financial institutions across 65 countries, with $3bn invested in total, mostly in the microfinance sector across the developing world.
“By joining forces with Incofin, we reaffirm our commitment to providing financial resources and specialised advisory services to elevate Nicaraguan women entrepreneurs, equipping them with the tools they need to lead and expand their businesses,” said Rubén Buitrago, general manager of Banco Ficohsa Nicaragua.
Headquartered in Antwerp, Incofin specialises in investments in inclusive financial services, agri-food value chains and clean water investments. Supported by an investor base that includes development banks, institutional investors, family offices, and private individuals, it currently manages around $1.1bn in assets.
As previously reported by Impact Investor, Belgian investment houses Degroof Petercam Asset Management and Korys acquired minority stakes in Incofin in April 2023 to help the Belgian impact fund manager pursue new business.
