Abraaj ALAF II (IFC-38042)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Chile
  • Colombia
  • Mexico
  • Peru
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
Approved
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
Jun 16, 2016
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
ABRAAJ LATIN AMERICA FUND II LP
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 Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 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.
Project Cost (USD)
$ 600.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 26, 2018

Disclosed by Bank May 11, 2016

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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.

Abraaj Latin America Fund II, L.P. (ALAF II) is raising $600 million to make 12-15 growth equity investments in middle-market companies located in Mexico, Colombia, Peru, and Chile.

The general partner of ALAF II is Abraaj Latin America Fund II GP Limited. The investment manager is Abraaj Investment Management Limited. Both of these entities fall under The Abraaj Group, a global private equity fund manager established in 2002 that invests across Asia, Africa, Latin America, the Middle East and Turkey.

ALAF II will operate and invest in Mexico, Colombia, Peru, and Chile. ALAF II and the general partner are domiciled in the Cayman Islands. Abraaj Investment Management Limited is headquartered in Dubai.

The Fund will seek control or significant minority (with strong minority rights) positions. The Fund is sector agnostic, but will focus on the consumer sector, logistics, manufacturing, education and developing energy generating/trading assets. primarily in Chile, Mexico, Colombia and Peru. While the Fund could potentially invest in activities of high environmental and social (“E&S”) risks, the E&S risks are considered to be low to medium and mainly entail limited adverse E&S risk and impacts (management of waste/wastewater/air emissions and occupational health and safety of employees) that are few in number, generally site-specific, largely reversible and readily addressed though appropriate mitigation measures. Therefore this project has been classified as Category FI-2 according to IFC’s Environmental and Social Review Procedure.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

ALAF II is targeting $600 million in total commitments. The proposed IFC equity commitment is up to $20 million, not to exceed 20% of aggregate capital commitments.

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.

Abraaj Latin America Fund II, L.P. is raising $600 million to make 12-15 growth equity investments in middle-market companies located in Mexico, Colombia, Peru, and Chile.


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.

Mr. Mujtaba Hussain
Office Address: 3rd Floor, GV08, DIFC, Dubai, P.O.Box 504905, UAE
Contact No.: +971 4 506 4400
Email Address: mujtaba.hussain@abraaj.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/

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How it works