Microfinance Focus, December 7, 2011: Desjardins Group in collaboration with Développement international Desjardins has created a new investment fund ‘Desjardins Fund for Inclusive Finance’ for developing the microfinance sector in emerging countries.

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 fund 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.

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.