Impact investors who provide finance in the developing world face a fundamental problem. Most of the capital for impact investment comes from the developed world – in dollars, euros, yen, etc. But the companies, microfinance institutions and projects creating impact operate in the local economy and need to borrow in local currency. If they borrow in hard currency, when local currencies depreciate, the companies borrow cost increase, potentially dramatically.
MFX was created in 2009, to help impact investors solve this problem, by giving them the ability to protect themselves against the risk of currency movement. Using hedging, currency risk can be taken out of the impact investment value chain, thus creating a more stable, secure impact investment business model.
MFX works with impact investors and companies across a range of industries from Microfinance, SME lending, renewable energy investment, low-income housing, health and sustainable agriculture. To see MFX’s list of clients click here.