PROJECT

Projects

Summary of Investment Information

Project Number

42684

Company Name

FONDO ESPERANZA SPA

Date SPI Disclosed

Dec 4, 2019

Country

Chile

Region

Latin America and the Caribbean

Projected Board Date

Jan 10, 2020

Environmental Category

FI-3 - No Impact

Status

Completed

Last Updated Date

Jan 27, 2023

Department

Regional Industry - FIG LAC

Industry

Financial Markets

Previous Events

Approved : Jan 10, 2020
Signed : Dec 16, 2020
Invested : Dec 23, 2020

Sector

Microfinance and Small Business - Non Commercial Banking

Project Description

The proposed investment (the “Project”) consists of an IFC anchor investment of up to US$10 million equivalent in local currency in an up to US$20 million total issuance for Fondo Esperanza SpA. (the “Company” or “FE”), as part of the Company’s first commercial paper program (the “Program”) in the local capital market in Chile (the “Country”). IFC would subscribe a longer dated 2-year tranche to mobilize the remaining US$10 million from other local investors expected to invest in a shorter renewable tranche. The Project will help expand the Company’s microfinance portfolio to low-income microentrepreneurs, currently underserved by the traditional banking sector.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation