Company name
Accion International
Project number
13436-01
FI-3 operations are those where the risk potential is considered low: the FI’s current or future portfolio consists of financial exposure to business activities that predominantly have minimal or no adverse environmental and social impacts.
E&S category
FI-3
Country
Regional
Sector
Investment Funds
Status
In implementation
Disclosed date
08/17/2021
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
10/19/2021
Approval date
10/19/2021
Signed date
12/22/2021
Sponsoring entity
N/A
Investment Operations Department Contact
Portfolio Management Division
Investment type
Syndicated amount
USD $ 7,500,000
Financing amount
USD $ 2,500,000
Currency
USD
Project scope and objective
IDB Invest is considering an equity investment up to US$10 million (including resources from IDB Invest’s administered funds) in the Accion Digital Transformation Fund (“the Fund”), an investment fund providing growth capital to microfinance institutions (“MFIs”) seeking to digitize their transactions and products. The Fund will be managed by Accion International (“Accion” or the “Fund Manager”), a pioneer in the microfinance sector with over 50 years of global experience in this segment.
The COVID- 19 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 would help bridge the MSME financial gap. The Fund would mark the beginning of a strategic cooperation with Accion, which is committed to financial inclusion focused on technical assistance and co-investments for MFIs in the region.
The Fund plans to invest in a total of 8-12 MFIs in Asia, Africa and Latin America. IDB Invest will support investments in Latin America . Investments in MFIs are estimated to be between US$8 million and US$10 million.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Contact information
For inquiries, comments and information requests about the project
Request informationAlternatively, you may also use the following contact information :
Client Contact
nandrewes@accion.org
PHONE NUMBER
+1 (202) 967-9529
POST OFFICE ADDRESS
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
IDB Invest has zero tolerance to reprisal or retaliation against anybody who voices its opinion or opposition to IDB Invest-financed projects.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ACCION DIGITAL TRANSFORMATION 13436-01 ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
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