Portland Caribbean Fund II, L.P. Commitment Increase (IIC-11911-01)

Countries
  • Colombia
  • Costa Rica
  • Dominican Republic
  • Panama
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Investment Bank (EIB)
  • IDB Invest (IDBI)
  • 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 14, 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
Portland Caribbean Fund II, L.P.
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)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 10.20 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)
$ 15.30 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 @ IIC website

Updated in EWS Sep 14, 2018

Disclosed by Bank May 5, 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.

According to IIC website, Portland Caribbean Fund II, L.P. is a multi-sector growth fund that targets high-growth middle market companies that are poised for national or regional expansion. Particular emphasis will be on the following sectors: services (financial and non-financial), communications, renewable energy, agribusiness, and infrastructure. The geographical focus of the Fund is the CARICOM member and associate member states, Dominican Republic, Colombia, Panama and Costa Rica. 

The objective of the project is to provide further resources to support private equity investments in the Caribbean region by increasing the IIC's investment in the Portland Caribbean Fund II, L.P.. The Fund now has a target size of US$200 million, a scale that will allow it to be successful and impactful and enable the Fund Manager to build a sustainable fund management platform in the Caribbean region for future successor funds. 

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a category FI-1 project according to the IIC's Environmental and Social Sustainability Policy because certain pipeline investee companies in the Fund's current or future portfolio are considered of high environmental and social risk. Portland's current portfolio is composed of investments in a regional telecom company, a wind farm in Panama, and a Bank in Bermuda. There are some other potential projects in diverse sectors such as energy, insurance, manufacturing, trade finance, fast food restaurants and trade finance.

Environmental risks and impacts associated with some sectors in the pipeline may include but are not limited to: i) environmental risks such as: air emissions, waste management, habitat alteration and fragmentation, ii) operational health and safety risks such as: chemical hazards, noise, fire and explosions, heat, and radiation, iii) community issues such as: land acquisition, health, safety and security, potential impacts on indigenous and other vulnerable communities, iv) biodiversity conservation and stakeholder engagement.

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

On December 2015, the IIC Board of Executive Directors approved an initial investment of US$5.1 million in the Fund. With the current project, the IIC proposes to increase its initial investment by US$10.2 million to reach a total investment of US$15.3 million in the Fund. This increase in IIC's commitment will strengthen and continue IIC's partnership with the Fund. Also, IIC will reach the investment level required to obtain the right to a voting membership at the Joint Advisory Committee instead of being an observer member, and will enable the IIC to explore opportunities to co-invest and finance the portfolio companies of the Fund.

The investors in the Fund are among others: Export Development Canada, European Investment Bank, German Development Bank (DEG), IFC, Caribbean Development Bank, Development Bank of Latin America (CAF) and local pension funds.

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 Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Portland Holdings Inc. Parent Company -

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.

IIC Communications Group
Email Address: divulgacionpublica@iadb.org

ACCOUNTABILITY MECHANISM OF IIC

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 (IIC)-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 IIC 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).

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