Vinci Impact Fund (IDBI-13030-01)

Countries
  • Brazil
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
Sep 1, 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
Vinci Partners Investimentos Ltda
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)
$ 10.00 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)
$ 10.00 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 Jul 20, 2020

Disclosed by Bank Jul 16, 2020


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Project Description

IDB Invest is considering an equity investment of up to US$10 million in Vinci Impact and Return IV ("VIR IV" or the "Fund"), an impact investment fund created to provide growth equity for small and medium-sized enterprises ("SMEs") in Brazil, with a focus on less developed regions. Following a triple bottom-line strategy, the Fund will seek market-level returns while deliberately seeking measurable socioeconomic impacts in line with the Sustainable Development Goals ("SDGs") and enhancing environmental, social and governance (ESG) standards.

The Fund's impact strategy will primarily consist of (i) seeking to invest in less developed regions of Brazil, where access to capital and know-how is limited and/or (ii) focusing on companies where there is a clear impact embedded in its business model. Moreover, the Fund will invest in sectors and themes that cover determined SDGs, making VIR's impact framework adherent to the United Nation's development guidelines. Additionally, VIR IV will partner with entrepreneurs that values impact as a mean of operating their businesses and generating value and will target companies and business in which a reliable impact measurement and monitoring framework application is possible on a continuous basis.

People Affected By This Project

Activity

Description

Compliance Indicator

Timeline

Review of the first three operations (after ESMS update)

Vinci Partners will provide detailed E&S due diligence reports of the first three operations (prior to investment), with aim to; (i) confirm the categorization and level of analysis undertaken, and (ii) review the proposed action plans, if any

E&S due diligence reports and action plans

At time of sub-investment

E&S capacity building

Senior management, loan officers and credit analysts will be trained by an experienced firm on the ESMS and IFC Performance Standards. New personnel will also be trained

Certificates of training completion

(annual reporting for new personnel)

6 months post disbursement

Use of external experts

The Fund will outsource the services of an experienced firm to undertake the E&S due diligence process (risk screening, action plan development and monitoring) for any high-level projects/investments. High risk sectors are generally considered those in corporate / project finance that may present significant risks / impacts.

Terms of reference (contract) with firm

On each investment considered high risk

Development of an external grievance mechanism

An external grievance mechanism in accordance with IFC Performance Standard 2 will be developed.

External grievance mechanism

3 months post disbursement

Investment Description
  • IDB Invest (IDBI)
Financial Intermediary
Contact Information

Client Contact Name: Mr. Pedro Quintella
Title: Partner
Telephone: +1 646 559 8022
Email:
pquintella@vincipartners.com

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).