32690 - FIRST

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Summary of Investment Information

Project Number

32690

Company Name

FIRST BRAZIL IMPACT INVESTING FUND LP

Date SPI Disclosed

Feb 7, 2013

Country

Brazil

Region

Latin America and the Caribbean

Projected Board Date

Mar 11, 2013

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Nov 30, 2016

Department

Equity Portfolio Management

Industry

Financial Markets

Previous Events

Approved : Jun 4, 2013
Signed : Jun 14, 2013
Invested : Dec 16, 2014

Sector

Private Equity/Venture Cap Fund - Country

Project Description

The project entails an IFC equity investment of up to $15 million in Fundo de Investimentos Riqueza Social para Todos (FIRST) Fund, (“FIRST” or the “Fund”), a 10-year closed-end impact investing fund that seeks to raise $125 million The Fund will target growth companies that have the potential to provide products and services to 1 million low-income people in Brazil. The capital will aim to invest mainly in the North and Northeast regions of Brazil and the education, health, housing, financial services sectors. The Fund will be managed by FIRST Gestao de Investimentos, a subsidiary of FIR Capital, a Brazilian venture capital fund manager established in 2001 that currently manages two venture capital/private equity funds in Brazil.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

Development Impact

IFC Role/Additionality: (i) Strong catalytic role: as an impact investment fund focused on low income populations, the Fund may have difficulties raising sufficient capital to hold a first close or reach its target size. IFC''s support, both financial and by providing our ˜brand name'', will send a positive signal to potential investors in FIRST and, more broadly, help this new asset class achieve proof-of-concept; (ii) provide additional market know-how (on AC) and by being able to provide co-financing to investees; (iii) Terms and structuring: IFC will ensure that the Fund''s structure and terms are in line with international best practices.

E&S Category Rationale / Risks and Mitigation

The project involves an equity investment in a ten-year impact investing fund that seeks to raise $125 million to invest in up to 10 growth capital small and medium enterprises with products and services for bottom of the pyramid households in Brazil. Overall E&S risks of potential portfolio are considered low to medium, as such the project is categorized as FI-2 in accordance to IFC''s Environmental and Social Review Procedures. Target sectors are services related to Education, Health, Housing and Financial Services. FIRST will not focus in any industrial activities. The Client will be required to screen sub-projects against IFC Exclusion List, the Brazilian E&S laws and regulations and the IFC Performance Standards.

The main E&S risks and impacts of the project derive from the E&S risks of the Fund's investments, the capacity and systems in place to manage these risks. At present the Fund does not have an Environmental and Social Management System (ESMS) outlining the procedures, responsibilities and tools for undertaking E&S risk management of its lending activities and E&S related due diligence is not yet part of its review process. No staff/department has been assigned responsibility for E&S due diligence and monitoring, and training needs to be provided to all staff involved in ESMS implementation. Funds focus in services should represent a mitigant of potential reputational risks, however special attention should be paid for supply chain risks of agribusiness and energy investments under consideration.

Contacts

For Inquiries About the Project, Contact

Marcus Regueira, Maria Cavalcanti, David TravessoFIR CapitalFIRST - Brazil Impact Investing FundBelo Horizonte Tel: 55 [31] 3074-0020About us: http://www.fircapital.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Description	Anticipated Completion Date
Nominate E&S Officers/Department	On or prior to Commitment
Establish an ESMS including guidelines for its implementation	On or prior to Commitment
Implement Staff Training	Prior to First Disbursement

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