Financing and technical assistance for projects with positive economic and social development impact

The IDB Group provides a wide range of financing and technical assistance solutions for companies, financial intermediaries and businesses of all sizes and diverse sectors across Latin America and the Caribbean.

We provide a variety of financial instruments such as loans, capital investments and grants. We also offer partial credit guarantees, guarantees for confirming letters of credit, syndicated and subordinated loans, and direct financing through value chains.

We support the private sector through our four windows: Structured and Corporate Finance Department, the Inter-American Investment Corporation, the Multilateral Investment Fund and Opportunities for the Majority.

Each private sector window offers complementary products and services that are tailored to the needs of each client.

• Large Companies
• State-Owned Enterprises
• Small and Medium-Sized Enterprises
• Micro and Small Enterprises
• Business with the Base of the Pyramid
• Financial Intermediaries
• Non-Profit Organizations and Academia

Opportunities for the Majority

Investing in underserved markets in Latin America and the Caribbean

The IDB Group’s Opportunities for the Majority (OMJ) invests in innovative business models that provide high-quality goods and services for low-income populations (base of the pyramid, BoP) in one of the IDB’s 26 borrowing member countries in Latin America and the Caribbean.

OMJ can finance projects to scale up innovative business models or provide business modeling assistance to private sector partners for the design of market-based solutions that seek to increase productivity, bring the poor into the formal economy, create jobs and address market failures that raise costs for those least able to afford them.

OMJ provides loans, partial credit guarantees, and technical assistance to private sector organizations of all sizes that invest in projects targeting the base of the pyramid in the region.

OMJ loans and partial credit guarantees usually range from $3 million to $10 million, butlarger operations of up to $20 million may be considered on a case by case basis. Typically, technical assistance projects range from $100,000 to $500,000 and are used to finance pilot business models, undertake market research, prepare feasibility studies, enable capacity building and support learning and dissemination activities.

OMJ’s Mission

Examples of Projects Financed by OMJ

Financial Products

Opportunities for Donors

Impact Investing

The IDB Group offers loans, guarantees and technical assistance for large companies as well as large scale projects that will have a positive impact on the social and economic development of its 26 borrowing member countries in Latin America and the Caribbean.

The IDB Group has a vast knowledge of Latin America and the Caribbean, the networks that enable us to build bridges and create alliances as well as the financial strength to raise money at competitive costs and transfer that benefit to our clients. We act as a catalyst to mobilize resources from third parties and we follow high environmental, labor, health and ethical standards.

We support large companies through:

• The Structured and Corporate Finance department (SCF) provides both project financing for greenfield and expansion projects through loans and guarantees and corporate financing for expansions and modernizations for large companies. The sectors in which SCF works include, among others: energy, transportation, water and sanitation, energy efficiency, recycling, agribusiness, sustainable natural resources, healthcare, education, and tourism. SCF acts as a catalyst, mobilizing resources from third parties through its Syndication Program (A/B Loans).
• Opportunities for the Majority (OMJ) finances projects that will help provide high-quality goods and services for the base of the pyramid. OMJ works with large companies to finance projects to scale up innovative business models and act as an incubator for pilot endeavors, including projects to adapt products, services and distribution channels to increase access and enhance product value as well as opportunities to replicate successful experiences.

Under the operations of its public sector side, the IDB can offer financing under its Better Conditions for Productivity (MAP) program to support innovative activities and leading research on financial and private sector development through regular calls for proposals. Research financed by MAP contributes to areas like SME development, credit and training tools for banks and entrepreneurs, agricultural finance, and regulatory simplification, among others. The work focuses on rigorous impact evaluations and activities that improve the effectiveness of IDB operations.

Since 2006, the IDB Group has been able to provide non-sovereign guaranteed financing as well as technical assistance to state-owned and mixed-capital enterprises in its 26 borrowing member countries in Latin America and the Caribbean.

The IDB Group also works with central governments and local administrations in the design, implementation and financing of public-private partnerships, providing services ranging from technical assistance to guarantees on contractual obligations assumed by governments.

The IDB Group provides support through:

• Structured and Corporate Finance department (SCF) leads all non-sovereign guaranteed operations for large infrastructure projects, financial institutions, capital markets, trade finance, companies, and state-owned enterprises in a broad range of economic sectors.
• Opportunities for the Majority (OMJ) finances projects that will help provide high-quality goods and services for the base of the pyramid. OMJ works with state-owned enterprises to finance projects to scale up innovative business models and act as an incubator for pilot endeavors, including projects to adapt products, services and distribution channels to increase access and enhance product value as well as opportunities to replicate successful experiences.
• The Multilateral Investment Fund (MIF): it provides grants for public companies, particularly public financial institutions, in the area of microfinance.

Under the sovereign-guaranteed side of the Bank, the IDB also finances technical studies through specific assistance funds on water and sanitation (Aquafund, Water and Sanitation Spanish Fund), sustainable energy (SECCI) and infrastructure (InfraFund), among others.

The IDB can also offer financing under its Better Conditions for Productivity (MAP) program to support innovative activities and leading research on financial and private sector development through regular calls for proposals. Research financed by MAP contributes to areas like SME development, credit and training tools for banks and entrepreneurs, agricultural finance, and regulatory simplification, among others. The work focuses on rigorous impact evaluations and activities that improve the effectiveness of IDB operations.

The IDB Group offers direct financing and technical assistance to small and medium-sized enterprises (SMEs) in its 26 borrowing member countries in Latin America and the Caribbean. We also support financial institutions seeking to expand lending to small and medium-sized enterprises as well as projects that will foster and strengthen the development of SMEs.

We provide support through:

• The Inter-American Investment Corporation (IIC): the only multilateral financial institution with an exclusive focus to provide direct and indirect financing to small and medium-sized enterprises in Latin America and the Caribbean. The IIC provides loans, guarantees, equity, quasi-equity as well as technical assistance through its FINPYME program to small and medium-sized enterprises in a wide variety of sectors with annual revenues ranging from $5 million to $35 million. IIC loans reach up to $20 million and the IIC works with third-party institutions to mobilize additional resources through syndicated loans. The IIC also supports financial institutions seeking to increase lending to SMEs.
• Opportunities for the Majority (OMJ) supports projects by financial institutions and other organizations that will improve business models of small and medium-sized companies serving the base of the pyramid and increase their access to finance. Most of OMJ’s support is in the form of loans as well as partial credit guarantees of up $10 million. The initiative, which also offers grants, works closely with international investors to leverage additional resources though syndicated loans.
• Structured and Corporate Finance department (SCF) is in charge of financing and providing technical support to large scale project financing. It provides loans and credit guarantees to financial intermediaries seeking to on-lend to small and medium sized enterprises. It provides senior and subordinated loans ranging from $10 million to $200 million at market-based interest rates and tenors that are usually longer than provided by market participants. SCF acts as a catalyst, mobilizing resources from third parties through its Syndication Program (A/B Loans). Moreover, SCF also offers credit guarantees and technical assistance in the form of grants.

Under the operations of its public sector side, the IDB can offer financing under its Better Conditions for Productivity (MAP) program to support innovative activities and leading research on financial and private sector development through regular calls for proposals. Research financed by MAP contributes to areas like SME development, credit and training tools for banks and entrepreneurs, agricultural finance, and regulatory simplification, among others. The work focuses on rigorous impact evaluations and activities that improve the effectiveness of IDB operations.

The IDB Group offers financing and technical assistance for business associations, non-governmental organizations, foundations, public sector agencies and financial institutions to support projects that benefit microenterprises, entrepreneurs and small companies throughout its 26 Latin American and Caribbean borrowing member countries. The IDB Group does not directly finance microenterprises.

The IDB Group supports the development of micro and small companies through:

• The Multilateral Investment Fund (MIF), one of the biggest investors in microfinance and venture capital funds to develop and pilot initiatives that will increase accessto finance, markets and capabilities and basic services for microentrepreneurs and small businesses in Latin America and the Caribbean.
  Most of the MIF financing is in the form of technical assistance grants, which can reach up to $2 million per project. The MIF also offers loan-term loans of up to $1 million and equity investments that can reach up to US$5 million.
• Opportunities for the Majority (OMJ) finances projects to scale up innovative business models and act as an incubator for pilot endeavors that will benefit microenterprises and small companies. It finances projects that promote higher quality and lower prices, help build local value chains, and foster co-creation of opportunities for businesses and local entities. OMJ also supports projects to adapt products, services and distribution channels to increase access and enhance product value as well as opportunities to replicate successful experiences.
  
  Most of OMJ financing is in the form of long-term loans and partial credit guarantees of up to $10 million. OMJ, which also offers technical assistance, partners with financial institutions to leverage resources for projects through syndicated loans.

Under the operations of its public sector side, the IDB can offer financing under its Better Conditions for Productivity (MAP) program to support innovative activities and leading research on financial and private sector development through regular calls for proposals. Research financed by MAP contributes to areas like SME development, credit and training tools for banks and entrepreneurs, agricultural finance, and regulatory simplification, among others. The work focuses on rigorous impact evaluations and activities that improve the effectiveness of IDB operations.

The IDB Group provides financing and technical assistance to a wide range of financial intermediaries, including banks of all sizes, non-bank financial intermediaries, microfinance institutions, leasing companies, investment funds, and insurance companies with operations and projects in the 26 borrowing member countries in Latin America and the Caribbean.

Besides financing and technical assistance, we also offer partnership opportunities for investment funds, impact investors and financial intermediaries to co-finance projects supported by the IDB Group.

The IDB Group works with financial intermediaries through:

• The Structured and Corporate Finance department (SCF) provides tailor-made medium- and long-term direct loans, guarantees and non-reimbursable technical assistance to financial institutions with assets above $500 million as well as investment funds.
  
  SCF works with local financial intermediaries especially in high social impact sectors such as housing and micro, small, and medium-size enterprises. Moreover, it has developed beyondBanking, a program with special sustainability lines for financial intermediaries in the areas of energy efficiency, renewable energy, and waste and water treatment and technical cooperation programs aimed at promoting sustainable environmental, social and corporate governance principles within financial intermediaries in the region.
  
  SCF’s Trade Finance Facilitation Program provides guarantees to cover the commercial and political risk of nonpayment by the issuing bank on trade-related instruments, and provides specialized training to trade finance banks and their clients.
  
  SCF finances between 25 percent and 40 percent of the total cost of a project, providing up to $200 million in financing. On an exceptional basis, it can increase its financing to up to $400 million. Grants usually range between $100,000 and $1.5 million. SCF acts as a catalyst, mobilizing resources from third parties through its Syndication Program (A/B Loans).
• The Inter-American Investment Corporation (IIC), which finances the development, expansion and modernization of small banks, leasing companies, and other financial institutions. The IIC also provides financing to financial institutions seeking to expand lending to small and medium-sized companies in member countries in the region. It provides lines of credit for expansion projects, working capital lines through FINPYME Credit, financial and operating lease lines, agency lines and trade finance facilities. The IIC offers long-term loans and credit guarantees of up to $20 million as well as equity investments of up to $5 million.
• The Multilateral Investment Fund (MIF), which finances the development, improvement and expansion of innovative products and services of micro lending institutions that provide micro and small production companies with access to finance, basic services as well as markets and capabilities. Most of the MIF financing is in the form of technical assistance grants, which can reach up to $2 million per project. The MIF also offers loan-term loans of up to $1 million and equity investments that can reach up to $5 million.
• Opportunities for the Majority (OMJ) supports projects by financial intermediaries serving the base of the pyramid. It finances projects to scale up innovative business models and act as an incubator for pilot endeavors. It finances projects that promote higher quality and lower prices, help build local value chains, and foster co-creation of opportunities for businesses and local entities. OMJ also supports projects to adapt products, services and distribution channels to increase access and enhance product value as well as opportunities to replicate successful experiences. Most of OMJ financing is in the form of long-term loans and credit guarantees of up to $10 million. OMJ also partners with financial institutions to leverage resources for projects through syndicated loans.

Under the operations of its public sector side, the IDB can offer financing under its Better Conditions for Productivity (MAP) program to support innovative activities and leading research on financial and private sector development through regular calls for proposals. Research financed by MAP contributes to areas like SME development, credit and training tools for banks and entrepreneurs, agricultural finance, and regulatory simplification, among others. The work focuses on rigorous impact evaluations and activities that improve the effectiveness of IDB operations.

The IDB Group offers loans, partial credit guarantees as well as technical assistance in the form of grants to non-profit and academic organizations to develop and pilot innovative projects and expand successful initiatives that will improve the living conditions of the low-income population in our 26 borrowing member countries in Latin America and the Caribbean.

The IDB Group also partners with academic institutions to conduct studies and provide technical assistance to small and medium-sized enterprises in the region. It works with non-profit organizations and academic institutions through:

• The Multilateral Investment Fund (MIF), which supports, mostly through technical assistance grants, the development of initiatives that will increase accessto finance, markets and capabilities and basic services for microentrepreneurs and small businesses in Latin America and the Caribbean.
• The Inter-American Investment Corporation, which partners with academic institutions to provide personalized technical assistance for individual companies to improve financial environmental and business management practices through its FINPYME program.
• Opportunities for the Majority Initiative (OMJ), which finances projects to scale up innovative business models and act as an incubator for pilot endeavors that will benefit the base of the socioeconomic pyramid. It finances supports that promote higher quality and lower prices, help build local value chains, and foster co-creation of opportunities for businesses and local entities. OMJ also supports projects to adapt products, services and distribution channels to increase access and enhance product value as well as opportunities to replicate successful experiences.
• Structured and Corporate Finance Department (SCF), which provides grants to non-profit organizations and academic institutions to develop and improve specific technologies and business models that can benefit projects supported by the IDB. SCF also act as a knowledge broker putting together non-profit organizations and academic institutions with its clients. Moreover, SCF and its clients also work with non-profits and academic institutions to carry out environmental monitoring.

Under the operations of its public sector side, the IDB can offer financing under its Better Conditions for Productivity (MAP) program to support innovative activities and leading research on financial and private sector development through regular calls for proposals. Research financed by MAP contributes to areas like SME development, credit and training tools for banks and entrepreneurs, agricultural finance, and regulatory simplification, among others. The work focuses on rigorous impact evaluations and activities that improve the effectiveness of IDB operations.

Corporate Procurement: Goods and Services for the IDB

The Inter-American Development Bank, through its Administrative Services and Corporate Procurement Division, purchases a broad array of goods and services to meet its internal needs. The principles of transparency, fairness, responsiveness, best value and accountability govern the Bank’s corporate procurement activities and are part of our Corporate Procurement Policy.

Goods and services procured by the Bank to meet its internal needs include consulting, technical and facilities support services such as food services, facilities management, security and janitorial services; construction and related design and engineering services; computer software and hardware; office furnishings and supplies; and the purchase and/or lease of real property.

According to our policy, procurement of goods or services with an estimated value greater than $50,000 are handled via competitive bid or proposal processes, with public notice at Current Procurement Opportunities.

Furthermore, the Bank may pre-qualify suppliers for a specific procurement via a published request for pre-qualification document (Pre-Qualification Inquiry or PQI) and via invitation to identified potential suppliers when it is in the best interests of the Bank to ensure, in advance of competition, that solicitations are extended only to capable suppliers.

The PQI process is intended to provide the Bank with sufficient data on a potential supplier’s organization, capacity, experience, performance and financial condition to determine its qualifications to perform. Potential suppliers can register online through the Supplier Registration Form and should note that the IDB is not an agency of the US Federal Government, and is not subject to procurement laws enacted by federal, state or local governments in the United States.

For more detailed information on doing business with the IDB, please review the IDB Supplier Guide.

For information about procurement policies at the Inter-American Investment Corporation, please visit www.iic.org.

The Policy and Guidelines for the Selection and Contracting of Consulting Firms for Bank-executed Operational Work were approved in 2014.