IIC Approves A MXN$220 Million Loan To Mexico'S Compartamos S.A.
06/12/2006Washington, D.C. - On June 13, 2006, the Inter-American Investment Corporation (IIC) approved a loan for up to MXN$220 million, equivalent to approximately US$20 million, to Compartamos S.A. (Compartamos). The operation, the IIC’s first in local currency in Mexico, consists of a medium-term, local-currency loan to support lending activities related to Compartamos' geographic expansion as well as the diversification of its sources of local-currency funding.
Compartamos is Mexico’s largest microfinance institution and one of the most important in the region. It has the most clients of all the region's microfinance institutions: more than 450,000 clients. Compartamos has 143 branches in 27 Mexican states. Compartamos seeks to meet the needs of Mexico's most underprivileged through loans to small companies owned primarily by women living in rural areas. At the end of 2005, the average loan granted by Compartamos was equivalent to approximately US$427.
It is expected that IIC’s financing will make it possible to grant some 500,000 loans over the life of the loan, thus providing substantial support to Compartamos' expansion and transformation into a multipurpose bank.
IIC's Board of Directors approved this operation during the launch of "Building Opportunity for the Majority," an Inter-American Development Bank (IDB) initiative that seeks to bring the benefits of economic progress to the low-income population in Latin America and the Caribbean, particularly those who live and work at the base of the economic and social pyramid.
The Inter-American Investment Corporation, a multilateral financial institution that is part of the IDB Group, provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, visit its Web site at www.iic.int.
Contact: Carlos Roa/Tomás Bermúdez
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