[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 project ID #86526.

Additional details

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".

Number of official sources

4

Number of total sources

4