IIC Approves US$10,000,000 In Financing For Banco Multisectorial De Inversiones In El Salvador
07/09/2008The operation will support the development of micro, small, and medium-size financial institutions in El Salvador
Washington, D.C. - The Inter-American Investment Corporation (IIC) approved a first loan of US$10,000,000 to Banco Multisectorial de Inversiones (BMI), a second-tier bank in El Salvador and a major provider of long-term funds for local financial institutions in El Salvador.
This financing complements the A/B loan of up to US$80 million approved by the Inter-American Development Bank on April 1, 2008. The A loan is for up to US$65 million, with the IDB providing US$50 million and the IIC up to US$15 million. International lenders will participate in the B loan for a total of up to US$15 million.
The alternative sources of financing currently available to BMI are foreign commercial banks and the domestic capital markets through debt issuances. However, the tenor of these funding sources tends to be shorter than that the term offered by the IIC.
The loan proceeds will allow BMI to extend the duration of its programs supporting onlending for low- to middle-income housing and the development of micro, small, and medium-size financial institutions in El Salvador. By supporting these key sectors, the IIC will support the Government of El Salvador in its efforts to reduce the housing gap and enhance the competitiveness and efficient development of the private sector.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It 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. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging 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, please visit www.iic.int.
Contact: Carlos Roa
Telephone: (202) 623-3955