The objective of the proposed loan is to support the lending activities of Coopenae by providing a long-term loan to be used to finance small and medium-size enterprises in Costa Rica.
Coopenae is the largest cooperative in Costa Rica, focused primarily on consumer lending, housing, and loans to SMEs. As of June 30, 2014, Coopenae had more than 90,000 members. The IIC’s loan to Coopenae will be carried out in collaboration with the Structured Corporate Finance Group of the IDB, which is providing a long-term loan to fund Coopenae’s activities in housing finance (more information here).
Environmental and Labor Issues:
This is a category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy because of the low risk of the subprojects in the financial intermediary’s current or future portfolio. In order to improve its assessment of the environmental and labor aspects of its operations, Coopenae will be required to attend the IIC’s environmental training workshop for financial intermediaries. The subprojects financed with IIC funds will be subject to an environmental review to verify that they are not on the IIC’s list of excluded activities and comply with national environmental and occupational safety standards. In addition, Coopenae will be required to submit annual environmental reports to the IIC detailing the progress made and problems encountered in the implementation of these practices.