Luxembourg Microfinance and Development Fund
The Luxembourg Microfinance and Development Fund (LMDF) finances microfinance institutions in less and least developed countries, aiming to alleviate poverty and promote financial inclusion. The fund targets vulnerable populations — especially women, youth and rural communities — through responsible financial services.
LMDF blends public and private capital and offers loans in EUR, USD and local currencies, with currency risk hedging mechanisms in place. It is structured under Investing for Development SICAV and classified as Article 9 under SFDR, emphasising sustainability and impact measurement.
Empowering vulnerable communities
Sustainable returns for investors​
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LMDF invests in emerging microfinance institutions serving financially excluded populations in low and medium HDI countries. As an Article 9 SFDR fund, LMDF prioritises dual objectives: delivering stable, sustainable returns for investors and maximising positive social impact for vulnerable communities.​​
Risk-mitigation through blended finance​
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LMDF uses a layered capital structure to attract a variety of investors and balance risk with impact. Class A investors take first-loss risk, enabling leverage, while Class B and Class C receive preferential returns with less risk, supporting long-term, impact-focused investment aligned with ESG goals.
Social and financial performance​
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LMDF demonstrates strong results in addressing poverty by operating in countries where financial exclusion is highest. Most supported institutions adhere to client protection principles, and new industry standards define fair and equitable treatment for microfinance clients, ensuring responsible and ethical financial services.
Creating positive impact
45
microfinance institutions financed directly
€1,967
average micro-loan
18,267
jobs supported
65,821
micro-entrepreneurs financed
74%
female clients
23
countries of operation
2,369
youth microenterprises financed*
63%
rural clients
* Clients under 25 years of age
LMDF investors:
