August 6, 2021
IDB Invest, a member of the IDB Group, has provided a syndicated, 4.5-year loan to JMMB Bank (Jamaica) Limited, which will allow the bank to access $31 million from impact investors to increase its lending and leasing portfolio to small and medium sized enterprises (SMEs) in Jamaica.
The participation of BlueOrchard Finance, Symbiotics and responsAbility in the deal will increase the availability of medium-term financing to JMMB Bank to support the growth of its SMEs lending portfolio, while contributing to the maturity and structure of its debt profile. It will also help enhance the diversification of its funding sources, decreasing the dependence on shorter-term deposits, to the benefit of its SME clients.
The move is in keeping with the JMMB Group’s commitment to assist SMEs to scale and grow their businesses by providing holistic solutions, and adding value to its SME clients, through the provision of financial partnership, resources, innovative financial solutions and a network; thereby, providing the necessary support for growth and filling the gaps that currently exist in the financial sector.
This is the first investment in Jamaica by these investors and the first international syndicated loan agreed by JMMB Bank. IDB Invest is thus bringing JMMB Bank closer to new sources of financing for the medium term. This deal complements an earlier IDB Invest financing round for JMMB Bank of $35 million with a five-year term.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About JMMB Bank (Jamaica) Limited
JMMB Bank (Jamaica) Limited is the 6th largest commercial bank in Jamaica in terms of loans and deposits. The Bank has a diversified portfolio in Jamaica in terms of sector concentration, across retail client-base, corporates and small and medium-sized enterprises (SME), offering a wide range of financial solutions including deposits, loans, cambio services, investment banking and financial partnership.
About BlueOrchard
BlueOrchard is a leading global impact investment manager and member of the Schroders Group. As a pioneering impact investor, the firm is dedicated to generating lasting positive impact for communities and the environment, while aiming to provide attractive returns to investors. BlueOrchard was founded in 2001, by initiative of the UN, as the first commercial manager of microfinance debt investments worldwide. Today, the firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital. Being a professional investment manager and expert in innovative blended finance mandates, BlueOrchard has a sophisticated international investor base and is a trusted partner of leading global development finance institutions. To date, BlueOrchard has invested more than USD 8bn across more than 90 countries. Over 215 million poor and vulnerable people in emerging and frontier markets received access to financial and related services with the support of BlueOrchard as of December 2020. For additional information, please visit: www.blueorchard.com.
About Symbiotics
Symbiotics is the leading market access platform for impact investing, dedicated to financing micro- small and medium enterprises and low- and middle-income households in emerging and frontier markets. Since 2005, Symbiotics has structured and originated some 4,000 deals for over 490 companies in almost 90 emerging and frontier markets representing more than USD 6.5 billion. These investments have been purchased by more than 25 fund mandates and more than 50 third party specialized fund managers, forming a growing ecosystem and marketplace for such transactions.
About responsAbility
In April of 2003, responsAbility was founded with a mission to empower the developing world through microfinance. After only 5 years, the company’s success was clear, with US$705 million assets under management invested in 216 companies in 48 countries. Now, with over USD 11 billion invested since inception, responsAbility continues to innovate with securitizations that make impact investing accessible to the capital markets, blended finance instruments that align risk profiles with the needs of public and private investors alike, equity investments into the valuable leapfrog effect of fintech in emerging markets and into sustainable food production that is crucial to health and waste-reduction, and access to clean energy funds that are unrivalled in the industry.