MSME COVID19 Response Fund (IDBI-13381-01)

Regions
  • World
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
Apr 27, 2021
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
BlueOrchard Finance Ltd.
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)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS Mar 9, 2021


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Project Description

The BlueOrchard Covid-19 Emerging and Frontier Markets MSME Support Fund (the "Fund" or "BlueOrchard MSME COVID19 Response Fund") is a new global debt fund focused on providing support financing to Micro, Small and Medium enterprises ("MSMEs") through specialized lenders (Financial Intermediaries ("FIs")) in Emerging Markets ("EMs") and frontier markets globally to mitigate the impact of COVID-19 pandemic and support economic recovery. IDB Invest is proposing an investment of up to US$35 million, or 15% of the total Fund capital, to support part of the Fund's investments in Latin America and the Caribbean ("LAC").

The Fund will be managed by BlueOrchard Finance Ltd, a global impact investment manager, with more than 20 years of track record in microfinance and financial inclusion.

With a target size of US$350 million, the Fund is expected to mobilize Development Finance Institutions ("DFIs") and global institutional investors' capital to provide much-needed funding to MSMEs through FIs (Microfinance Institutions, ("MFIs"); banks and Non-Bank Financial Institutions ("NBFIs")). Given the characteristic of the COVID-19 crisis, in an initial phase of 12 - 24 months, the Fund is expected to provide liquidity solutions to support MSMEs operations, secure jobs, and avoid business closures and disruptions in the supply chain. In a second phase, the Fund will provide funding to support the economic recovery of MSMEs through funding to expand MSME portfolios of specialized FIs to further increase financial inclusion and support economic recovery.

The Fund will be further equipped with a dedicated Technical Assistance Facility supported to fast track the recovery of MSMEs even in the most vulnerable sectors and geographies.

The project is classified by IFC as having a risk category of FI-2.

Investment Description
  • IDB Invest (IDBI)
Contact Information

Client name: Maria Teresa Zappia
Title: Deputy CEO
Phone number: +41 22 5964795
Email:
Mariateresa.Zappia@blueorchard.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.iadb.org/en/access-information/information-request

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

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 (IDB Invest)-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 IDB Invest 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).