IIC supports Chilean SMEs through new Financing Program for Small Financial Intermediaries (IFIP)
Loan of US$4.5 million to Incofin S.A. will support the growth and competitiveness of small and medium-sized enterprises
Santiago, Chile, August 27, 2015 — More than 250 small and medium-sized enterprises (SMEs) in Chile will benefit from a loan of US$4.5 million provided by the Inter-American Investment Corporation (IIC) to Incofin S.A., a financial institution that will use the proceeds to provide financing for working capital, factoring services, and financial leasing.
The loan forms part of the Financing Program for Small Financial Intermediaries (IFIP), a new IIC program to provide financing to small and medium sized financial institutions, offered in all IIC member countries in Latin America and the Caribbean.
“With this loan, the IIC is leveraging a new program to provide support to more than 250 SMEs and to strengthen Incofin’s role as a financial intermediary in the market,” said Adriana González, IIC investment officer in charge of the operation.
“For Incofin, participating in this program and having the IIC’s support is of great importance to our efforts to diversify our sources of financing, which is necessary for our growth and to continue supporting SMEs, the base of our business,” said Sergio Contardo, corporate manager of Empresas Incofin.
The IFIP program provides credit in the form of medium and long-term loans of up to US$5 million, subordinated loans, and guarantees. The program targets regulated and non-regulated financial institutions as well as cooperatives and companies specialized in leasing, factoring, and microfinance. The funds of the program are allocated to SMEs, microloans, capital goods financing, and mortgage loans for low- and middle-income housing.
Incofin is one of the main nonbank financial institutions in Chile, specializing in factoring and leasing operations for SMEs. With a track record of more than 20 years, Incofin has positioned itself as one of the most experienced companies in this sector. It currently has 20 branches across the country, through which it offers financing services to SMEs to purchase vehicles, machinery, and other productive goods.
It is the IIC’s second operation with Incofin; the first provided financing to close to 90 SMEs for their working capital needs, factoring operations, and financial leasing operations.
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. The IIC provides companies with funding in the form of equity investments, loans, and guarantees, as well as technical assistance, advisory services, and innovative knowledge products. In 2014, the IIC approved 64 operations for a total amount of US$426.3 million. Since its inception, the IIC has approved more than 920 direct loan and equity investments to 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: Adriana González
Telephone: +57 (1) 325-7086 in Bogotá, Colombia