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
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FI-3

Country

Regional

Sector

Investment Funds

Status

Proposed

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
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10/19/2021

Approval date

09/28/2021

Signed date

N/A

Sponsoring entity

N/A

Team leader

de Beaufort, Lucas

Investment type

Financing requested

N/A

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.

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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. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ACCION DIGITAL TRANSFORMATION 13436-01 ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)

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Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Njord Andrewes

POSITION

Deputy Chief Investment Officer

PHONE NUMBER

+1 (202) 967-9529

EMAIL

nandrewes@accion.org

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices