IIC finances more than 400,000 loans to microentrepreneurs in Mexico
Loan to Banco Compartamos in local currency improves access to financing and strengthens partnership that has already resulted in 1.6 million subloans
Washington, D.C., April 4, 2014 — The Inter-American Investment Corporation (IIC) approved a loan of up to MX$400 million (about US$30 million) to Banco Compartamos S.A. I.B.M. The funds will go to finance some 400,000 loans to microentrepreneurs in Mexico's rural areas.
This is the IIC’s fourth operation with the bank. Prior loans allowed 1.6 million subloans to be granted throughout the country to individuals who face difficulties accessing credit.
“We have put a lot of effort into being a solid, stable institution. In addition to flexibility and diversification, this line of credit gives us the opportunity to continue growing and to keep our promises to our customers in Mexico, our most important market,” said Patricio Diez de Bonilla, finance director for Gentera, the group of which Banco Compartamos is a subsidiary.
“With this investment from the IIC, Banco Compartamos will be able to continue to diversify its sources of funding and have access to the kind of medium-term resources that give Compartamos the opportunity to serve the most disadvantaged sectors of the Mexican population. The majority of its customers are women in rural areas who use the resources to build their businesses and provide for their families and their communities,” said Michael Apel, the IIC lead investment officer in charge of the operation.
Founded in 1990, Banco Compartamos is a niche Mexican bank that specializes in microfinance. Since 2006, it has operated as a multipurpose bank. Compartamos has a broad network of more than 500 branches through which it serves the disadvantaged sectors of the population that have limited access to financial services, the majority being women microentrepreneurs in the country's rural areas.
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 small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2013, the IIC approved 71 operations totaling $415.4 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of US$5.207 billion. An additional US$3.009 billion has been mobilized through cofinancing and syndication agreements. For more information on the IIC, visit www.iic.org.
Contact: Michael C. Apel
Telephone: +1 (202) 623-2521 in Washington, D.C.