Early Warning System

Countries

Colombia
Mexico
Peru

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

IDB Invest (IDBI)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Nov 19, 2019

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Kandeo Fund 3D (I), L.P.

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Equity

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 30.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 30.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Primary Source

Original disclosure @ IDBI website

Updated in EWS Oct 26, 2019

Disclosed by Bank Oct 9, 2019

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

IDB Invest is evaluating an investment of up to US$30 million in Kandeo Fund 3D (I), LP, which is one of the vehicles that is part of Kandeo Fund 3D (the "Fund"), a regional investment fund that will provide financing to middle-market companies in Peru, Mexico and Colombia. The project's objective is to increase access to customized financing for companies with growth potential but which lack access to long-term financing, contributing to their growth initiatives and job creation.The Fund will be managed by Kandeo Investments Advisor LLC ("Kandeo"), an experienced fund manager, which is composed of a team of qualified professionals with experience investing in middle-market companies in Latin America.IDB Invest's participation will allow the Fund to reach the necessary scale to effectively execute its strategy. In addition, IDB Invest will provide a technical assistance that aims at strengthening the diversity, inclusion and gender initiatives at the Fund level.

People Affected By This Project

People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

No.

TASK

ACTION

PRODUCT

COMPLETION DATE

Implement IDB Invest's exclusion list

Ensure the inclusion of all activities on IDB Invest's exclusion list in Kandeo's exclusion list.

Updated exclusion list.

Prior to the first disbursement.

Strengthen existing policies

Improve the ESMS by following the International Finance Corporation's (IFC) Performance Standard 1 guidelines, strengthening its procedures to assess its projects in relation to the Performance Standards.

Together with an independent consultant, the ESMS should include: i) Environmental and Social Policy, ii) Internal organizational capacity, iii) Environmental and due diligence processes/procedures in identifying risks and impacts, iv) Portfolio monitoring and supervision, v) External communication procedure.

The ESMS should indicate that in projects categorized as moderate-high risk, Kandeo will require the implementation of the IFC's Performance Standards and the contracting of an external consultant to assist in the assessment and mitigation of environmental and social risk.

Environmental and Social Management System (ESMS). Proof of personnel training.

9 months after financial closure (signing of investment commitment).

Assessment of the first three transactions

Together with an independent consultant, implement the ESMS in selected clients/projects. Kandeo will send the first three fund transactions to IDB Invest for review and feedback, in order to: (i) confirm E&S categorization and (ii) assess the proposed action plan.

Report on the implementation and assessment of pilot projects.

When the first three transactions have been made.

Capacity Building and training

Train personnel responsible for implementing ESMS on E&S requirements of national laws and the implementation of IFC's performance standards (PS). Ensure that all new personnel receive the same training.

E&S training certificate for the personnel responsible for implementing the ESMS, as well as proof of E&S training for new personnel.

14 months after financial closure. And every time new personnel responsible for implementing the ESMS is incorporated.

External Communication Mechanism

Implement and maintain an external communication procedure, including methods for receiving, recording, examining and evaluating, tracking, responding and clearing external doubts or complaints following PS 12 requirements.

External Communication Mechanism.

3 months after financial closure.

6. Contact InformationFor project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (seeInvestment Summarytab), or IDB Invest using the emaildivulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing tomecanismo@iadb.orgorMICI@iadb.org, or calling +1(202) 623-3952.

[1]Interpretive note for Financial Intermediaries. November 2018.https://www.ifc.org/wps/wcm/connect/38d1a68049ddf966af3cbfda80c2ddf3/FI+Interpretation+Note+November+2018.pdf?MOD=AJPERES

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

IDB Invest (IDBI)

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Kandeo (Financial Intermediary)

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IADB

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

Client Contact Name: Edgar Enrique Sandoval
Title: Head, Private Debt
Telephone: +57 316-431-7310
Email:
esandoval@kandeofund.com