January 18, 2022, Washington, DC – Delphos International Ltd. (Delphos), the leading DFI-focused financial advisory firm, and client MFX Currency Risk Solutions (MFX) have secured a USD 7M equity investment from Proparco and a USD 50M credit facility from FinDev Canada to support the expansion of MFX’s operations in emerging markets.
Proparco is providing a direct equity investment of USD 7M, which will make the French DFI MFX’s second largest shareholder. FinDev Canada’s financing includes an innovative USD 45M collateral facility, of which USD 30M is supported by insurance from AXA XL Group (a group of leading private sector insurance companies), and a USD 5M stand-by letter of credit. The financing accompanies an existing USD 100M guarantee provided by the US Development Finance Corporation (US DFC) – a long-standing partner of MFX. Delphos advised MFX in securing the financing from FinDev Canada and Proparco.
MFX is a leading provider of accessible and flexible currency hedging solutions for impact investors and microfinance institutions in emerging markets, helping them efficiently manage their currency risk in local currency lending transactions. Since its inception in 2009, MFX has helped hedge over USD 4.5B in loans to businesses across key impact sectors, including affordable housing, agriculture, clean energy, healthcare, and other industries that require local currency funding. The company’s diverse product offering covers over 55 currencies, including exotic currencies not commonly available from commercial banks, with little or no collateral requirement.
Delphos’ President Andrew Brown said of the transaction, “Delphos is proud to have supported MFX in securing funding from FinDev Canada and Proparco to finance the company’s growth. MFX plays a critical role in the development finance industry providing affordable hedging solutions to impact investors and thus directly improving access to local currency financing for underserved segments in emerging markets, such as microenterprises, SMEs, and women-owned businesses.”
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ABOUT DELPHOS INTERNATIONAL:
Delphos is the definitive source for arranging innovative financial solutions for development companies and projects. We specialize in raising long-term, competitively-priced capital for corporates, fund managers, developers, SMEs, sovereigns, and entrepreneurs around the world. Since 1987, we have arranged more than $20 billion in development finance to support the efforts of over 1,200 companies. We tap into the resources of more than 350 government agencies and multilateral organizations worldwide to help clients realize their international business goals and have sustainable impact. In addition to our capital raising efforts, Delphos provides market-leading transaction advisory and investment/risk management consulting services to government and private sector clients across multiple industries. We are approved advisors to AfDB, DFC, IDB Invest, IFC, USAID, US Ex-Im Bank, USTDA, WBG, leading private equity firms, infrastructure developers and strategic investors, and foreign governments and utilities.
Delphos International is not registered as a broker dealer. Securities transactions subject to U.S. law are provided in cooperation with and transacted through Marathon Capital Markets, LLC, member FINRA/SIPC.