• The equity investment will support access to finance for microfinance institutions across Latin America and the Caribbean

IDB Invest has committed an equity investment up to $10 million in the Accion Digital Transformation Fund, an investment fund providing growth capital to microfinance institutions (MFIs) seeking to digitize their services. The fund is managed by Accion, a pioneer in the microfinance sector with over 50 years of global experience in this field.

The pandemic has increased the financial gap for micro, small and medium-sized enterprises (MSMEs) and has specifically affected women, who represent the majority of MFI borrowers. Access to financial services is key to MSME recovery and digitizing those services will accelerate financial inclusion. By investing in the Fund, IDB Invest helps bridge the MSME financial gap.

The equity investment includes resources from IDB Invest’s administered funds and will support the Fund’s target of around $125-$150 million. The Fund plans to invest in a total of 8-12 MFIs in Asia, Africa and Latin America, and it expects to have its first closing in the first quarter of 2022. IDB Invest will support investments in Latin America and the Caribbean (LAC).

IDB Invest looks forward to a broad collaboration with Accion in terms of pipeline and technical advisory services, applying the Women’s Empowerment Principles or WEP Tool Diagnosis to create gender equality action plans for LAC MFIs.

This deal is expected to contribute to four United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Responsible Consumption and Production (SDG 12) and Partnerships for the Goals (SDG 17).

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.