IDB Invest and SEAF boost SMEs in the Caribbean
IDB Invest has provided an equity investment in the SEAF Caribbean SME Growth Fund of up to $10 million - or 20% of the fund’s total commitments, or the lesser of the two. The investment will contribute to the development of the Caribbean private equity investment ecosystem.
In addition, IDB Invest mobilized a $10 million blended finance loan to support the fund’s portfolio companies in the implementation of eligible climate resilience, climate change mitigation and post-disaster recovery projects with resource from the Canadian Climate Fund for the Private Sector in the Americas – Phase II.
The fund aims to provide risk capital to growth-oriented companies in the English-speaking countries of the Caribbean Common Market, which has become even scarcer due to the COVID-19 crisis. The fund can invest in Suriname as well. The fund has a broad strategy but focuses on the following key prospective sectors: manufacturing, agribusiness, healthcare, training and education, information and communication technology, financial inclusion, renewable clean energy services, retail distribution, and transport and logistics.
The primary development objective is to promote the growth and productivity of growth-oriented Caribbean small and medium enterprises that generate positive development results through their business activities. By combining equity financing and strategic expertise, the fund is expected to boost the companies’ local and regional expansion as well as their operational efficiency.
