TCX-THE CURRENCY EXCHANGE FUND CAPITAL INCREASE

Promoter – Financial Intermediary

TCX INVESTMENT MANAGEMENT COMPANY BV

Location

• Africa, Caribbean and Pacific

Description

TCX provides derivative instruments addressing currency and interest rate risks related to local currency financing. The project consists of an EIB participation in the equity capital increase of TCX.

Objectives

The participation of EIB in the equity capital increase of TCX will support the expansion and broadening of activities of the fund which deepen the access to finance to Micro, Small and Medium-sized Enterprises (MSMEs) and supports their long-term sustainability. TCX facilitates the local currency financing activities in the emerging markets and extends the reach of local currency lending to high-risk markets where affordable long-term lending is in high demand. Moreover, TCX activities support the development of the beneficiary economies and the creation of robust financial markets by assisting financial intermediaries to strengthen their balance sheets and avoid term mismatches. By improving access to local currency finance for MSMEs, the project will promote more inclusive and balanced economic growth in the ACP countries in line with the objectives of the Cotonou Agreement and the priorities of the Joint ACP-EU Cooperation Framework for Private Sector Development Support in ACP Countries.

Sector(s)

• Services - Financial and insurance activities

Proposed EIB finance (Approximate amount)

EUR 15 million

Total cost (Approximate amount)

EUR 110 million

Environmental aspects

TCX benefits from the environmental and social standards (E&S) standards and policies applied to the underlying projects by its clients, primarily DFIs and MFIs/impact institutions. To ensure that its business operations support sustainable investments and activities, TCX incorporates E&S in its due diligence process based on the International Finance Corporation Performance Standards.

Procurement

N/A

Status

Signed - 29/11/2019