IIC renews its commitment to Banco de Bogotá S.A. by approving a credit line of up to US$30 million


The line may be drawn down over a period of up to five years and is repayable in installments or at maturity

Washington, D.C. – On July 26, 2011, the Inter-American Investment Corporation (IIC) approved a proposed credit line of up to US$30 million for Colombia’s Banco de Bogotá S.A. The proceeds will be used to provide financing to SMEs via leasing and factoring transactions, as well as to finance working capital and purchases of fixed assets.

This is the IIC’s second operation with Banco de Bogotá. The first helped strengthen and consolidate Banco de Bogotá by funding loans to eleven SMEs at an average of US$909,090 per loan.

"This second operation seeks to further enhance the relationship between the IIC and Banco de Bogotá. The IIC will continue to support Banco de Bogotá’s performance by enabling it to grow its loan portfolio. It is expected that thirty-three loans will be made under the credit line, making long-term financing more readily available to SMEs in Colombia," said Sandra Reyes, IIC investment officer in charge of the operation.

About Banco de Bogotá

Banco de Bogotá, established in 1870, was Colombia’s first financial institution. It grew, merged with other domestic banks, and became part of Grupo Aval in 1987. In July 2010 Grupo Aval entered into an agreement with GE Consumer Finance Central Holding Corp. and General Electric Corporation for the purchase of 100% of the shares of BAC Credomatic GEFC Inc., owner of Banco BAC International Bank, Inc. and BAC Credomatic operations in Central America (Panama, Costa Rica, Nicaragua, Honduras, El Salvador, and Guatemala) as well as in Mexico, The Bahamas, and the Cayman Islands. In August 2010 Grupo Aval assigned its contractual position to Leasing Bogotá Panamá, a subsidiary of Banco de Bogotá. For more information on Banco de Bogotá, visit www.bancodebogota.com

About the IIC

The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.int

Contact: Sandra Reyes (in Colombia)

Telephone: + (571) 325-7053

Email: sandrare@iadb.org