Financial Inclusion Social Bond (IDBI-13019-01)

Countries
  • 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
May 6, 2020
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
N/A
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)
Guarantee
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)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Apr 9, 2020

Disclosed by Bank Apr 4, 2020


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Project Description

The transaction consists of IDB Invest underwriting two bond issues by a Peruvian financial company for up to US$20 million: (i) a subordinated social bond aimed at equal opportunities for women-led micro and small enterprises denominated in Peruvian Soles ("PEN") for up to the equivalent of US$10 million, with an eight-year term and bullet payment; and (ii) a senior social bond aimed at equal opportunities for women-led micro and small enterprises denominated in PEN for up to the equivalent to US$10 million, with a four-year term and bullet payment. The bond issues are intended to increase the Issuer's accountable capital and support its portfolio growth strategy, which targets women-led micro and small enterprises in Peru. The creation of a fund usage framework in line with the principles and guidelines for social impact bonds is underway. IDB Invest will provide advisory services to obtain a second party opinion ("SPO") to validate and confirm the appropriateness of the methodological framework used.

Investment Description
  • IDB Invest (IDBI)
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).