Kandeo Debt Fund (IDBI-12668-01)

Countries
  • Colombia
  • Mexico
  • Peru
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 19, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Kandeo Fund 3D (I), L.P.
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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


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Project 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

No.

TASK

ACTION

PRODUCT

COMPLETION DATE

1

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.

2

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).

3

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.

4

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.

5

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
  • IDB Invest (IDBI)
Private Actors
  • Kandeo -- Financial Intermediary
Contact Information

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