Project detail - ACCION DIGITAL TRANSFORMATION FUND

ACCION DIGITAL TRANSFORMATION FUND

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Who is our client

Accion Digital Transformation Fund ("ADTx", the "Fund") is a global investment fund that provides growth capital to microfinance institutions in Africa, Asia and Latin America. The fund is managed by Accion, a pioneer in the microfinance sector with over 50 years of global experience in this field.

Funding objective

The Fund’s goal is to support the digital transformation of established MFIs in emerging markets serving un(der)served customers in order to increase outreach and create social impact through active engagement.

Why we fund this project

The investment shows a strong fit with FMO's objectives to increase financial inclusion for un(der)banked populations, empower entrepreneurs and their local communities, to support innovation, and serve the poorest populations in emerging markets. The strong focus on supporting MFIs in their digital transformation and thereby addressing the needs of the un(der)served, is the key differentiator to all other financial inclusion funds.

Environmental and social rationale

The E&S categorization is B, based on the risk profile of the pipeline companies, the Fund manager’s investment strategy and demonstrated commitment to E&S.

Country
Global
Sector
Financial Institutions
Signing date
7/19/2022
Total FMO financing
USD 21.50 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B