36006 - Abraaj IFC Global Growth Markets Strategic Fund

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Summary of Investment Information

Project Number

36006

Company Name

ABRAAJ GLOBAL GROWTH MARKETS AGGREGATOR FUND L.P.

Date SPI Disclosed

May 13, 2015

Country

World Region

Region

Global

Projected Board Date

Jun 18, 2015

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jun 11, 2022

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Dec 17, 2015
Signed : Jun 29, 2016
Invested : Sep 25, 2014

Sector

Growth Equity Fund

Project Description

The proposed projects entails forming a strategic partnership with the Abraaj Group (“Abraaj”) whereby IFC would commit to a number of Abraaj-managed private equity funds, spread across a number of growth market countries and sectors via an Abraaj-managed feeder vehicle established for this purpose.

The proposal entails transferring to an Abraaj-managed feeder vehicle IFC’s potential commitment to the Abraaj Growth Markets Health Fund and Abraaj Turkey Fund which were disclosed on IFC’s website on December 16, 2013 and Mar 27, 2015, respectively through separate Summary of Investment Information, and IFC’s existing commitments to Abraaj North Africa Fund II and Abraaj Africa Fund III, each of which were disclosed on IFC’s website on June 13, 2014, and July 17, 2014 respectively through separate Summary of Investment Information. IFC intends to make additional commitments to other private equity funds managed by Abraaj through such vehicle, which will be disclosed on IFC’s website through separate Summary of Investment Information, once IFC is ready to proceed to appraisal stage on those funds.

Sponsor / Cost / Location

Development Impact

(i) Job creation: the underlying funds will focus on mid-cap companies which in IFC''s experience achieve high job creation rates.
(ii) Access to finance: the underlying funds'' target regions / sectors suffer from limited long-term equity capital and debt provided by commercial banks in those markets tend to focus on asset back lending and large corporate or state owned companies.
(iii) Private sector development: Abraaj''s hands-on management approach in the underlying funds'' portfolio companies will help companies improve operational efficiency, achieve national and regional growth, and explore exit opportunities through cross-border trade sales or listing on national / regional stock exchanges, which will further support the equity capital markets in IFC''s target countries.

(i) Catalytic role: The strategic partnership will ensure capital is invested in IFC''s priority sectors and geographies.
(ii) Mobilization: IFC investment will help mobilize capital from other investors.
(iii) Best practices: IFC''s involvement in the underlying funds will ensure the adoption and implementation of corporate governance and environmental and social ("E&S") standards in the underlying funds'' investments.

E&S Category Rationale / Risks and Mitigation

The project has been categorized as FI-2 according to IFC’s Environmental and Social Review Procedures. The underlying funds included in the strategic partnership are mid-cap funds focusing mostly on medium risk sectors such as consumer products, logistics, healthcare, education, industrial and infrastructure services considered to have limited E&S risks and impacts and which can be readily addressed through mitigation measures. The applicable requirements are the Exclusion List, the National E&S Laws in the countries where the portfolio companies will be located, and the IFC Performance Standards.

The key risk is the ability of Abraaj to identify and manage the environmental and social risks associated with its investment activities in the underlying funds. Abraaj has an Environmental and Social Management System (“ESMS”), outlining the procedures, responsibilities and tools for undertaking E&S risk management of its investment activities and E&S related due diligence, which is in line with IFC requirements. All Abraaj funds adopt the Group ESMS. Abraaj has a Global E&S Director who oversees all Abraaj funds. The E&S performance of Abraaj funds in which IFC is an investor is found to be satisfactory. For each of the underlying funds under this project, a separate due diligence will be carried out to identify specific E&S risks and impacts and key mitigation measures. Each of the underlying funds will also be required to assign an E&S officer who will be required to complete training on E&S risk management and on implementation of the ESMS and application of IFC performance Standards.

Contacts

For Inquiries About the Project, Contact

Mitali Atal
The Abraaj Group
Dubai International Financial Centre (DIFC)
Gate Village 8, 3rd Floor
PO Box 504905
Tel: +971 4 506 4400
Fax: +971 4 506 4600
Email: mailto:mitali.atal@abraaj.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:

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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.

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Task Title & Description	Anticipated Completion Date
Develop guidelines	06/30/2015

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