Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

MFX raises capital to help impact investors reduce foreign-exchange risks

Minimizing currency risk is necessary to freeing up outside capital in emerging and under-developed markets.

MFX Solutions offers currency swaps and forward contracts to enable lenders to fix currency exchange rates over the life of their investments and secure borrowers against depreciation of their local currency.

The Overseas Private Investment Corp., the U.S. development finance agency, is investing $120 million on top of its earlier $48 million commitment to MFX, which covers investors in clean energy, microfinance, agriculture and affordable housing.

The new funding will allow MFX, which also is backed by the Dutch development bank FMO, to grow its portfolio from $600 million to $2 billion.

MFX says it has helped more than one million entrepreneurs secure loans in 45 different currencies.

(OPIC, by the way, is on the budget chopping block. As Bloomberg asks, “Why Cut an Agency That Makes Money?”)

This post originally appeared in ImpactAlpha’s daily newsletter. Get The Brief.

You might also like...