IIC collaboration with BlueOrange Capital aims to mobilize $1 billion for Latin America and the Caribbean
The investments will align with the United Nations-backed Sustainable Development Goals (SDGs)
ASUNCIÓN, Paraguay – Today at the IDB-IIC Annual Meetings in Asunción, Paraguay, IDB President, Luis Alberto Moreno, IIC Chief Executive Officer, James P. Scriven, and Bertrand Badre, CEO of BlueOrange Capital, signed a memorandum of understanding to promote economic development in Latin America and the Caribbean by providing additional capital to entrepreneurs.
This cooperation forms part of the IIC’s mobilization efforts, which include IIC’s A/B loan program, and aims to bring up to $1 billion in additional financing to Latin America and the Caribbean over the next several years, with approximately $10 of private capital mobilized for every $1 of capital provided by the IIC.
BlueOrange will invest predominantly mezzanine or “subordinated” debt, capital difficult to come by in the region, to enable companies to benefit from a less dilutive and more flexible form of financing, complementing senior debt and equity. The investments will align with the United Nations-backed Sustainable Development Goals (UN’s SDGs) and be scored by the IIC’s “DELTA” measurement system for social impact, focusing on areas including, but not limited to, small to medium enterprises (SMEs), renewable energy, sustainable infrastructure, health care, education, financial services and agribusiness. BlueOrange will seek market-level financial returns as well as verifiable sustainable development outcomes.
Co-investment vehicles highlight the IIC’s catalytic ability to mobilize resources to achieve sustainable development by securing new capital to the region. Mobilization also underscores IIC’s counter-cyclical role of providing financing in times of low liquidity and market uncertainty. In 2017, the IIC aims to add an additional $1.8 billion in third-party assets to its current $4.2 billion under management. The IIC is hosting several events with partners at the Annual Meeting in Asunción to strengthen its mobilization capacity.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank Group (IDB Group), is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of $11 billion under management and 350 clients in 21 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
BlueOrange Capital seeks to invest in opportunities in a diversified set of emerging market companies and projects that deliver both strong risk adjusted returns and social impact. Founding financial sponsors of BlueOrange Capital include Paul Polman (CEO of Unilever), Henri de Castries (Former Chairman of AXA), Ray Chambers (Former Chairman of Wesray Capital), and Emmanuel Faber (CEO of Danone), among others.
As a fundamental component of its strategy, BlueOrange manages investments for social and environmental impact to foster inclusive and sustainable growth and reduce risk. Through predominantly mezzanine debt investments, BlueOrange will respond to the growth and capital needs of entrepreneurs in these regions. BlueOrange’s Founding Partners are Bertrand Badre, Amer Baig, Suprotik Basu, and Emmanuelle Yannakis, along with Managing Director and Founder, Blair Miller.