ACCION Digital Transformation Fund (IDBI-13436-01)

Regions
  • Latin America and Caribbean
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
Oct 12, 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
Accion International Transformation Fund
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)
$ 3.30 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)
$ 10.00 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 Aug 23, 2021

Disclosed by Bank Aug 17, 2021


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

IDB Invest is considering an equity investment up to US$10 million (including resources from IDB Invest's administered funds) in the Accion Digital Transformation Fund ("the Fund"), an investment fund providing growth capital to microfinance institutions ("MFIs") seeking to digitize their transactions and products. The Fund will be managed by Accion International ("Accion" or the "Fund Manager"), a pioneer in the microfinance sector with over 50 years of global experience in this segment.

The COVID- 19 pandemic has increased the financial gap for micro, small and medium-sized enterprises ("MSMEs") and has specifically affected women, who represent the majority of MFI borrowers.

Access to financial services is key to MSME recovery, and digitizing those services will accelerate financial inclusion. By investing in the Fund, IDB Invest would help bridge the MSME financial gap.The Fund would mark the beginning of a strategic cooperation with Accion, which is committed to financial inclusion focused on technical assistance and co-investments for MFIs in the region.

The Fund plans to invest in a total of 8-12 MFIs in Asia, Africa and Latin America. IDB Invest will support investments in Latin America . Investments in MFIs are estimated to be between US$8 million and US$10 million.

Investment Description

Contact Information

EMAIL: requestinformation@idbinvest.org

PHONE: +1(202)-566-4566

ADDRESS: 1350 New York Ave NW, Washington, DC 20005

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).