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Abraaj in deal to promote private sector development

WASHINGTON DC, April 24, 2015

The Inter-American Development Bank (IDB) and the Inter-American Investment Corporation (IIC), a member of the IDB Group, have established a private-sector focused partnership with The Abraaj Group, a leading private equity investing firm operating in growth markets.

As agreed in a memorandum of understanding (MoU), the partners aim specifically to promote private sector development and investment in Latin America and the Caribbean.

Luis Alberto Moreno, IDB president, said: “In today’s dynamic business environment, small and medium-sized enterprises (SMEs) need to think and act globally. In partnering with our region’s SMEs, global private equity players such as Abraaj help them to overcome the challenges and harness the opportunities of global competition.”
 
The IDB, IIC and Abraaj will develop both financing and knowledge products as partnership opportunities, aiming to expand the regional private equity industry.

In terms of financing, they will seek to mobilise resources for equity investments in high-growth, medium-sized companies, co-finance initiatives in areas of shared priority, and bring advisory and training services to Abraaj’s portfolio companies across Latin America and the Caribbean.

Carl Muñana, general manager of IIC, said: “The role of equity is critical for meeting the financing demands of the private sector. Equity investments catalyse growth, create jobs and spur innovation across investee companies while attracting further investors to our region. Private equity as an asset class is still in its beginnings in Latin America and the Caribbean but it has enormous potential to impact development.”
 
The collaboration will feature knowledge-sharing by promoting investment know-how and entrepreneurship through training, conferences, workshops and joint publications, among other activities.
 
Arif Naqvi, founder and group chief executive officer of The Abraaj Group, said: “We are pleased to enter into this memorandum of understanding with the IDB and the IIC.  Our collaboration is testimony to the importance of combining private and public-sector efforts to spur entrepreneurship and growth in Latin America. 

“With Abraaj’s unique investment approach and the IDB Group’s platform, resources and commitment to further developing the private sector in Latin America, our collaboration will support  the investment and growth of Latin American business champions, driving value not only for shareholders but also to wider constituents and stakeholders, ensuring a positive impact on job creation and sustainable socio economic development.” - TradeArabia News Service




Tags: IDB | development | Private | Abraaj | sector | IIC |

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