BDMG: Innovation in Access to Finance for the Base of the Pyramid Microentrepren
The project objective is to increase access to finance for Microenterprises and Individual Microenterprises startups from the base of the pyramid (BoP) in the state of Minas Gerais (MG) Brazil, through application of an innovative credit methodology developed by the Entrepreneurial Finance Lab (EFL) which helps to overcome the market failure that prevents them from accessing business credit lines. To support the project objective, the Opportunities for the Majority Initiative (OMJ) will enter into a US$10 million risk-sharing facility (RSF) (or its equivalent in Brazilian Reais) with Banco de Desenvolvimento de Minas Gerais (BDMG), the development bank of the state of MG. With the RSF, BDMG will launch a new financing program for ME startups, and be the first bank to apply the EFL methodology in Brazil, as it seeks to broaden the base of eligible clients for business start-up financing.

Project Detail

Country

Brazil

Project Number

BR-L1366

Approval Date

September 10, 2013

Project Status

Closed

Project Type

Guarantee

Sector

FINANCIAL MARKETS

Subsector

FINANCIAL INCLUSION

Lending Instrument

BID Invest

Lending Instrument Code

IIC

Modality

PCG (Partial Credit Guarantee)

Facility Type

-

Environmental and Social Impact Category (ESIC)

Category B13: Uncategorized Directive B.13

Total Cost

USD 26,377,105.00

Country Counterpart Financing

USD 17,145,118.00

Original Amount Approved

USD 9,231,987.00
Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
2980/OC-BR Non-Sovereign Guaranteed USD - United States Dollar Ordinary Capital Guarantee Financial Instrument
2980/OC-BR-1 Non-Sovereign Guaranteed USD - United States Dollar Ordinary Capital Private Sector Financing
Operation Number 2980/OC-BR
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Guarantee Financial Instrument
Operation Number 2980/OC-BR-1
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Private Sector Financing

Can’t find a document? Request information

 Implementation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1910681823-30065
Agreement - Financial Closing - SCF
BDMG_ Garantía Parcial de Crédito 2980_OC-BR a Banco de Desenvolvimento de Minas Gerais [37823039].PDF
Jan. 21, 2015
Spanish
https://www.iadb.org/document.cfm?id=EZSHARE-1910681823-30067
Agreement - Financial Closing - SCF
BDMG_ Partial Credit Guarantee 2980_OC-BR to Banco de Desenvolvimento de Minas Gerais [37823035].pdf
Jan. 21, 2015
English
 Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1910681823-30066
Environmental and Social Management Reports
Environmental Social and Management Report (ESMR) - BDMG Project [37826879].DOCX
Jun. 12, 2013
English
https://www.iadb.org/document.cfm?id=EZSHARE-2051225923-4
Project Abstract
Project Abstract [37381566].PDF
Mar. 01, 2013
English
https://www.iadb.org/document.cfm?id=EZSHARE-2051225923-5
Environmental and Social Strategies
Environmental and Social Strategy [37381092].PDF
Mar. 01, 2013
English

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