The Dutch development bank FMO has closed two debt facilities for a total of $8m to the 10-year debt fund Social Investments Fund 6.0 (SIF 6.0), which backs social enterprises in Sub-Saharan Africa and Latin America.

SIF 6.0 is the sixth fund managed by Global Partnerships Fund Management, which is owned by US-based NGO Global Partnerships (GP). 

The target fund size is $75m and the Fund’s purpose is to provide senior loans to tier II/III microfinance institutions (MFIs) and 'social enterprises' -entities providing basic products and services to the Base of the Pyramid (BoP)- in Latin America and Sub-Saharan Africa.

FMO is investing $8m from the MASSIF fund in 5 and 10-year notes that will catalyze shorter-tenor notes from impact investors.

MASSIF was created in 2006 as a merger of three existing government funds: the SME Fund (since 1978), the Seed Capital Fund (1995) and the Balkan Fund (1998).

FMO manages MASSIF on behalf of the Dutch Government.

The MASSIF fund provides resources to financial intermediaries and institutions that cater to MSMEs and low-income households.

Jeroen Harteveld, Fund Manager of MASSIF, said: “SIF 6.0 investment initiatives and the Fund’s expansion into Africa are a great match with MASSIF’s focus areas.”

The Fund’s mission is to invest in sustainable solutions that help impoverished people earn a living and improve their lives.

It does this by providing financing to social enterprises working in one or more of the following investment initiatives: (i) women-centered finance with education; (ii) women-centered finance with health; (iii) rural-centered finance with education; (iv) smallholder farmer services; and (v) solar lights.

It is anticipated the Fund will invest in additional initiatives over time, such as home improvement finance or more efficient cook stoves.

Chantal Korteweg, Manager Financial Institutions at FMO, said: “FMO is proud to have provided these facilities to SIF 6.0. With the Fund, GP is broadening its scope from MFIs that provide additional services to include other types of entities with a clear social impact.”

Global Partnerships is an impact-led investor, pioneering and investing in sustainable social enterprises who deliver high-impact products and services for people living in poverty.

The firm’s investments are focused around three opportunity areas: economic, energy and health.

Global Partnerships currently invests in a portfolio of 50 microfinance institutions, social businesses and cooperatives in 14 countries in Latin America, the Caribbean and East Africa.

Mark Coffey, CIO & COO of Global Partnerships, said:  “We are thrilled to again have FMO’s participation in our latest fund, which will support Global Partnerships’ ongoing expansion in sub-Saharan Africa, long-standing commitment to Latin America, and  growth in emerging investment initiatives, such as smallholder farmer finance and solar lighting.”