Eurocapital IV

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Project Number: 
CH3919A-01
Expected Consideration Date by the Board: 
10/07/2014
Date Posted: 
09/01/2014
Company: 
Eurocapital S.A.
Sponsoring Entity: 
Not applicable
Financing Requested: 
Loan of up to US$10 million
Sector: 
Financial Services
Location: 
Santiago, Chile
Country: 
Scope Objective: 

Operating in Chile since 1998, Eurocapital S.A. engages in recourse factoring operations, purchasing invoices, bills of exchange, checks, contracts, promissory notes, and other instruments issued by small and medium-sized enterprises (SMEs) in the course of their operations. The proposed project consists of a loan of up to US$10 million. This IIC loan will enable Eurocapital to carry out factoring operations denominated in or indexed to the U.S. dollar, primarily involving sales of exports by SMEs that meet the IIC’s eligibility criteria.

Eurocapital has a 3.2% share of the local factoring market and 20 branch offices throughout Chile, including its parent company.

Environmental Review: 

Environmental and Labor Issues

This is a category IF-3 project according to the IIC’s Environmental and Social Sustainability Policy owing to the low risk posed by the subprojects in the financial intermediary’s current or future portfolio. With a view to improving assessment of the labor and environmental aspects of its operations, Eurocapital will be required to attend the IIC’s environmental training workshop for financial intermediaries and develop a sustainable management system that includes a policy and procedures for analyzing its clients from an environmental standpoint. Eligible Enterprises financed with IIC resources will be subject to an environmental review and must comply with national environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. In addition, Eurocapital will be required to submit annual environmental reports to the IIC detailing its progress and any difficulties encountered in implementing these practices.