33879 - FDC II

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

33879

Company Name

Federacion de Cajas de Credito y de Bancos de los Trabajadores SC de RL

Date SPI Disclosed

Oct 30, 2013

Country

El Salvador

Region

Latin America and the Caribbean

Projected Board Date

Dec 2, 2013

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 5, 2025

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Dec 4, 2013
Signed : Dec 6, 2013
Invested : Dec 16, 2013

Sector

Microfinance and Small Business - Non Commercial Banking

Project Description

The proposed project consists of a $20 million remittance-backed funding transaction with Federación de Cajas de Crédito y de Bancos de los Trabajadores, S.C. de R.L. de C.V. (“Fedecrédito” or “FDC”) an existing client, intended to support FDC’s growing portfolio of consumer, MSMEs and housing loans that are provided through its 55 member institutions.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to Microfinance Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

-Scaling up microfinance: The project will enhance FDC''s ability to support the members of the system in expanding access to financial products and services for low-income households.
-Investments in Micro, Small and Medium enterprises: Through the provision of greater funding lines for the Member Institutions, they will expand their lending to El Salvadorean businesses, stimulating investment, business activity and the creation of new jobs, particularly in less developed regions of the country that are significantly under-served by the financial sector.
-Support the integration of Micro and Small Enterprises into the formal sector, as access to credit is one of the principal stimuli for these businesses to move out of informality.
-Support investments in the agri-business value chain through the funding of member cooperative institutions which target rural lending.

-This proposed investment would be the second transaction where IFC supports Fedecredito in raising longer tenor funding using the remittances backed funding program that was established in 2010.
-IFC''s extensive experience in supporting microfinance entities worldwide should help provide support to FDC in its strategy to diversify its product mix and support its effort in targeting particular niches better.
-IFC will support FDC in strengthening its Corporate Governance and E&S Management System at FDC''s and the system''s level.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement	Not Available	Not Available	Not Available
Access to Finance: Outstanding Microfinance Portfolio (#)	Outstanding Portfolio (#)	Not Available	Not Available	Not Available
Access to Finance: Outstanding Microfinance Portfolio ($)	Outstanding Portfolio ($)	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

Fedecrédito provides four core products to its members: MSME loans which are mostly used to support working capital to buy equipment, Crédito Popular which supports inventory finance for micro-vendors, Housing loans mainly used for renovations, and Consumer loans. The overall portfolio risk includes business activities that have limited adverse environmental and social risks or impacts that are few in number and generally site specific, and readily address through mitigation measures. As such, the project is classified as FI-2 and the client will be required to apply IFC’s Exclusion List and the national laws and regulations.

The key E&S impacts and risks derive from FDC and the member institutions capacity to identify and manage the potential environmental and social risks associated with its lending activities particularly lending to MSME’s involved in agriculture which could have some social and environmental impacts and risks .

FDC has implemented a satisfactory environmental and social management system and has dedicated environmental and social staff in place to provide support to the credit unions in the implementation of the environmental and social procedures. The credit officers at the member institutions are responsible for the initial sub-loan screening against the IFC Exclusion List and verification of compliance with national environmental and social requirements (i.e., permits, licenses, etc.) Key officers at the member institutions have been trained in environmental and social materials. Fedecrédito will be required to enhance its Human Resource Policy in order to be consistent with the provisions of PS 2 Labor and Working Conditions.

Contacts

For Inquiries About the Project, Contact

Alex David Hernández Buendia
Projects and Cooperation Secretariat
FEDECRÉDITO
25 Av. Norte y 23 Calle Poniente, Edificio Macario Armando Rosales Rosa, San Salvador
Phone: (503) 2209-9620 Fax: (503) 2226-5090, Mobile: (503) 7039-3403
Website: http://www.fedecredito.com.sv

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer