IIC to Finance Homes for Middle- and Low-income Families in El Salvador
Loan of US$15 million granted to Scotiabank El Salvador S.A. will also benefit local SMEs
Washington, D.C., August 3, 2015 — The Inter-American Investment Corporation (IIC) granted a loan of US$15 million to Scotiabank El Salvador S.A., a subsidiary of Canada’s Bank of Nova Scotia (BNS), to finance close to 100 homes for middle- and low-income families and to grant some 70 loans to Salvadoran small and medium-sized enterprises (SMEs).
“This operation has a dual purpose. On one hand, we’re helping middle- and low-income Salvadoran families buy their own homes through mortgage loans, and on the other, we’re helping SMEs in El Salvador get the financing they need to grow sustainably,” said Marvin Guevara, the IIC senior investment officer in charge of the loan. “We also continue to strengthen the IIC’s institutional relationship with Scotiabank in Latin America, this time providing specific support for the lending activities of one of its main subsidiaries in Central America.”
Meanwhile, Sergio Cruz Fernández, the executive president of Scotiabank El Salvador, said that “for Scotiabank El Salvador, this transaction marks an important milestone in the diversification of our sources of financing, as it is the first such transaction with the IIC. This helps us broaden our mortgage and SME operations.”
Scotiabank El Salvador is a financial entity with 18 years operating in El Salvador and is currently the third largest bank in the country’s financial system. Scotiabank El Salvador mainly focuses on retail banking with an emphasis on residential mortgages, where it is the market leader. Scotiabank El Salvador serves 430,000 customers through a network of 56 branches, 7 electronic service points, and 132 ATMs located throughout the country.
This is the IIC’s fifth operation with a Latin American subsidiary of BNS. Previous operations were with the group’s subsidiaries in Peru and Central America and focused on benefiting the region’s SMEs.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on SMEs. The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with technical assistance, advisory services, and knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Marvin Guevara
Telephone: +503 2233-8902 in San Salvador, El Salvador