Original disclosure @ IFC website
Updated in EWS Jun 29, 2020
Disclosed by Bank Jun 22, 2020
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The proposed project is a joint equity investment of US$50mn by IFC and IDA in TCX, a fund established in 2008 by a group of Development Finance Institutions and specialized micro-finance vehicles to offer products to manage currency risk in emerging markets and developing economies (EMDE). IFC will invest US$10 million for its own account and a further US$40 million on behalf of IDA under the Private Sector Window Blended Finance Facility. IFC is an existing investee in TCX with a 4.46% shareholding as at December 31st 2019. The proposed investment will increase TCXs capacity to offer currency risk management products in IDA countries and consequently enable offshore investors including DFI to provide local currency financing in those countries on competitive terms. IFC as a shareholder will benefit from member-pricing which will enable IFC to provide more local currency financing in IDA countries where hedging solutions may otherwise not be available
The Currency Exchange Fund (‘TCX’) was founded in 2007 by a group of development finance institutions, specialized microfinance investment vehicles and donors to offer solutions to manage currency risk in developing and frontier markets
The Fund has a number of investors. These include the German and Dutch governments, who provided risk capital to facilitate the participation by other investors. The other investors can be divided in a) development finance institutions (DFIs), including FMO from the Netherlands, KfW, DEG and EFSE from Germany, AFD and Proparco from France, BIO from Belgium, OFID from Vienna, JBIC from Japan and Cofides from Spain; b) multilateral development finance institutions including EBRD, based in London, the EIB from Luxembourg, the IFC and the IDB from Washington DC, the AFDB from Tunis/Abidjan and the DBSA from Johannesburg and c) specialized microfinance investment vehicles (MIVs) including Oikocredit, Oxfam-Novib Funds, Triple Jump/ASN Funds, Blue Orchard Microfinance Fund, and Grameen Crédit Agricole Foundation.
The Fund is managed by TCX Investment Management Company BV (sometimes called ‘TIM’), a fund management company, based in Amsterdam, whose primary responsibility it is to manage the Fund and to execute the Fund’s developmental mandate.
CEO of TIM
+31 6 225 631 86
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