DFC Approves USD245m in Commitments to Adenia Capital, Monk’s Hill Ventures, ADM Capital & Meridiam Group

09 Mar 2022

DFC CEO Scott Nathan opened his first meeting of the Board of Directors following his confirmation by the U.S. Senate.

WASHINGTON – The U.S. International Development Finance Corporation (DFC) Board of Directors has approved $245 million in investments this quarter that address the climate crisis through innovation and climate-smart urban infrastructure and elevate businesses with loans and professional business management practices throughout Africa. In addition, DFC approved several other investments at the Corporation level, bringing total approved projects to nearly $364 million for the quarter. DFC’s investments will provide highly developmental outcomes through private sector-led growth in the countries where the Corporation works, providing a sustainable and values-based alternative to competing investment models.

““The projects DFC approved this quarter will improve people’s lives and promote U.S. foreign policy in Africa, the Middle East, Latin America, and the Indo-Pacific,” said DFC Chief Executive Officer Scott Nathan. “DFC’s Board of Directors has been critical to the Corporation's early success, and I want to thank them for their contributions to our work. I look forward to working with the Board to continue making a development impact.”

Today’s March 9 meeting of the Board of Directors was CEO Scott Nathan’s first DFC Board meeting. In his remarks at the start of the Board meeting, CEO Nathan emphasized the importance of efficient and effective systems to enable DFC to source and support highly developmental transactions. He also thanked the Board for its engagement and support of international development and U.S. foreign policy priorities. See a full summary of the meeting at DFC’s Board of Directors web page.

In addition, the projects approved this quarter will advance the Biden-Harris Administration’s Build Back Better World (B3W) Initiative, and DFC initiatives such as the 2X Women’s Initiative, Global Health and Prosperity Initiative, and Portfolio for Impact and Innovation (PI2).

DFC continues to focus on development in countries where the agency can provide the greatest impact. Nearly $298 million of DFC capital approved this quarter will benefit low-income countries (LICs) and lower-middle income countries (LMICs).

Investments approved by the Board this quarter include:

  • Improving business management practices while helping companies grow in Africa: A $40 million equity investment in Adenia Capital (V) LP will make growth-control investments that enable mid-stage companies across Africa to build out their management teams, expand their geographic footprint, and improve their environmental, social, and governance standards while promoting women's economic empowerment.
  • Promoting sustainable land management practices and increasing women’s economic empowerment through smallholder inclusion in Indonesia*: A $100 million partial credit guaranty to ADM Capital Asia Climate-Smart Landscape Fund LP will enable $200 million in loans to local enterprises striving for climate-smart land management and emissions reduction. Additionally, the transaction will advance women’s participation in the sector increasing their income and improving their livelihoods.
  • Advancing the digitalization of Southeast Asia*: A $25 million equity investment in Monk's Hill Ventures Fund III, a venture capital fund that will use technology to facilitate environmental protection and increased access to healthcare, education, and economic opportunities in hard-to-serve communities.
  • Expanding climate-resilient infrastructure in Africa and the Middle East*: An up to $80 million direct loan to The Urban Resilience Fund, a blended finance investment fund managed by Meridiam Group, will enable municipalities to identify, develop, and invest in essential infrastructure projects that respond to the critical needs of urban population growth in Africa and the Middle East.

All four of the projects approved by the Board this quarter advance gender equity and support DFC’s commitment to unlocking the economic potential of women through the Corporation’s 2X Women’s Initiative.

Additional projects approved by DFC since its last quarterly Board meeting include:

  • Promoting natural climate solutions: In partnership with USAID’s Bureau for Development, Democracy, and Innovation, a $12.5 million partial credit guaranty to Livelihoods Carbon Fund SICAV-RAIF will support ecosystem-restoration, agroforestry, and rural energy projects in lower-middle income countries.
  • Expanding women’s access to affordable housing in India: A $5.17 million direct loan to ManiBhavnam Home Finance India Pvt Ltd will increase women’s access to mortgages across cities in northern India.
  • Advancing gender equity in health systems in Brazil: A $31 million direct loan to GIP Medicina Diagnóstica S.A. will increase the number of women’s health diagnostic centers in Brazil.
  • Supporting renewable energy in Egypt*: DFC’s purchase of a $50 million green note issued by Virtuo Finance S.A.R.L will support a new tool for climate finance in emerging markets.
  • Boosting entrepreneurship in Mexico*: A $10 million direct loan to Banco Covalto S.A. will expand funding capacity to extend its lending portfolio to small and medium sized enterprises (SMEs) in Mexico. Recently acquired by Credijusto, Banco Covalto S.A. will become the first regulated digital bank in Mexico dedicated to SMEs, reducing the cost and improving the quality of financial services through the application of technology.
  • Boosting entrepreneurship in Mexico*: A $10 million direct loan to Banco Covalto S.A. will expand funding capacity to extend its lending portfolio to small and medium sized enterprises (SMEs) in Mexico. Recently acquired by Credijusto, Banco Covalto S.A. will become the first regulated digital bank in Mexico dedicated to SMEs, reducing the cost and improving the quality of financial services through the application of technology.
  • Increasing financing to enterprises empowering women in Nigeria: A $250,000 loan portfolio guaranty for AB Microfinance Bank Nigeria will help mobilize capital to small- and medium-sized enterprises in Nigeria that benefit women and/or are owned or led by women. DFC’s guaranty is provided in collaboration with USAID to support the African Union Development Agency-NEPAD's 100,000 SME Initiative.

*Investments pending Congressional Notification.

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U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.  

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