Active Development AidData Chinese Aid

[China Co-Financing Fund] IDB approves 15 million USD loan from CHC for Mexico Ventures SME Mezzanine Fund

$15M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Mexico Ventures SME Mezzanine Fund
Country	Mexico
Start Date	Jun 24, 2015
End Date	Jun 09, 2033
Duration	6,560 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85354`

Grant Description

[China Co-Financing Fund] IDB approves 15 million USD loan from CHC for Mexico Ventures SME Mezzanine Fund On 24 June 2015, the Inter-American Development Bank (IDB) approved a private sector loan (PSL) for the Mexico Ventures SME Mezzanine Fund, through which IDB would provide 30 million USD from its ordinary capital (Loan 3496A/OC-ME), and the People's Bank of China would provide 15 million USD (Loan 3496/CH-ME) via the China Co-Financing Fund for Latin America and the Caribbean (CHC).

However, the IDB lists this project as cancelled, and it does not appear a loan contract was signed.

The project intended to provide increased access to financing for medium-sized businesses in Mexico, with medium size defined as having revenues up to 45 million USD annually.

This would be accomplished by Mexico Ventures SME Mezzanine Fund in two ways: (1) providing direct mezzanine loans of between 1 million and 9 million USD to such companies and (2) investing in other funds with similar goals of providing medium-sized businesses loans. The fund's overall target size is MXN5 billion, approximately 378 million USD.

Mexico Ventures SME Mezzanine Fund GP is a joint venture between Fondo de Fondos and Sun Mountain Capital.

Fondo de Fondos is a private equity firm based in Mexico, and Sun Mountain Capital is a United States based private equity firm.

The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.

📋 Staff Comments

Although the IDB marks the project as cancelled, project status has been set to Pipeline: Pledge. While the 15 million USD loan was authorized, it does not appear a loan contract was ever signed. Thus, because the funds were never committed, the project status cannot be coded as 'cancelled'.

📚 Sources & References

ME-L1174 : Mexico Ventures SME Mezzanine Fund
RESOLUTION DE-55/15
PROJECT ABSTRACT
Environmental and Social Strategy (ESS) - Mexico Ventures SME Mezzanine Fund Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.