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.
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
Client Contact Name: Mr. Pedro Quintella
Telephone: +1 646 559 8022
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).