PROJECT

Projects

Summary of Investment Information

Project Number

46046

Company Name

CORPORACION CAFSA SA

Date SPI Disclosed

Apr 22, 2022

Country

Costa Rica

Region

Latin America and the Caribbean

Projected Board Date

May 31, 2022

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Dec 14, 2022

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Jun 8, 2022
Signed : Nov 7, 2022
Invested : Dec 12, 2022

Sector

Finance Companies

Project Description

The proposed project consists of a senior secured financing package for up to US$30 million comprised of: (i) a senior secured “A” Loan in an amount of up to US$20 million, for IFC’s own account, including US$10 million of unfunded credit risk participation from credit insurance (CIP) and (ii) an up to US$10 million mobilization package through a senior secured “B1” loan and/or parallel loan for Corporacion CAFSA, S.A., Financiera CAFSA, S.A., and Arrendadora CAFSA, S.A. (altogether CAFSA or the Company) in Costa Rica. The purpose of the investment is to support the growth of CAFSA’s financing and leasing portfolios for i) small and medium enterprises (SMEs) that seek financing solutions to acquire vehicles and ii) for the purchase of hybrid and/or electric cars (HEV), which are expected to represent at least 25% of the proceeds (the “Project”).

Associated Advisory Engagement

IFC’s financing is intended to be complemented by the support offered through IFC’s advisory services to increase CAFSA’s climate related portfolio and facilitate the development of an integral value proposition for the subsegment of climate-smart/green financing/leasing products.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation