TCX II

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 The proposed project is a joint equity investment of US$50mn by IFC and IDA in TCX, a fund established in 2008 by a group of Development Finance Institutions and specialized micro-finance vehicles to offer products to manage currency risk in emerging markets and developing economies (EMDE). IFC will invest US$10 million for its own account and a further US$40 million on behalf of IDA under the Private Sector Window Blended Finance Facility. IFC is an existing investee in TCX with a 4.46% shareholding as at December 31st 2019. The proposed investment will increase TCXs capacity to offer currency risk management products in IDA countries and consequently enable offshore investors including DFI to provide local currency financing in those countries on competitive terms. IFC as a shareholder will benefit from member-pricing which will enable IFC to provide more local currency financing in IDA countries where hedging solutions may otherwise not be available