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.
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
USD $ 7,500,000
USD $ 2,500,000
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.
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