TCX II (IFC-41700)

Regions
  • World
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 24, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
THE CURRENCY EXCHANGE FUND N.V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Corporate Actor Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 29, 2020

Disclosed by Bank Jun 22, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

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

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

TCX Fund
Ruurd Brouwer
CEO of TIM
+31 6 225 631 86
r.brouwer@tcxfund.com
The Netherlands
Websitewww.tcxfund.com

 

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works