Project Outcome: i) Stakeholder’s Effects – Increase access to finance for MSMEs and women-owned enterprises: Peru’s credit market remains shallow, with credit to GDP at about 45%. Access to finance is more limited for smaller enterprises, and the formal MSME finance gap is estimated at US$10 billion, or 4.7% of GDP. IFC’s investment will support Vinci Compass Peru in expanding financing for corporations, including women-owned enterprises. Women-led MSMEs are more likely to be credit constrained than men-led MSMEs (27.0% vs. 16.7%), despite lower past-due loan ratios, which shows they remain underserved. The Project will help create jobs by providing MSMEs with working capital to grow. MSMEs account for 31% of GDP and nearly 60% of employment in Peru. By improving access to finance, the Project will support growth, competitiveness, and job preservation. Market Creation Outcome: ii) Competitiveness: The Project will support private investment funds in Peru as an alternative source of financing alongside banks, in a concentrated market where banks and CMACs dominate MSME lending. This is particularly relevant for MSMEs, which still rely heavily on supplier credit and short-term bank lines. By supporting factoring and reverse factoring, the Project will help broaden access to working capital, improve market contestability, and strengthen supply chains by allowing suppliers to convert receivables into immediate liquidity. IFC’s participation and advisory support will also help mobilize new investors into private debt and strengthen the Fund’s capacity to identify and serve more enterprises, including women-owned enterprises, while promoting more diversified financing channels for Peruvian corporates.

Financial Additionality: i) IFC will play an important role by providing a total investment of up to US$40 million equivalent in PEN to the Fund. The proposed investment will play a countercyclical role by supporting the Fund’s operations at a time of declining liquidity in local capital markets. Continued withdrawals from private pension funds have reduced the availability of long-term capital and weakened demand for alternative investment vehicles, particularly private debt funds. IFC’s participation will help stabilize market depth, strengthen the Fund’s capital base, and crowd in new investors. ii) IFC is expected to mobilize around US$40 million from institutional investors, such as local pension funds and insurance companies. IFC’s strict due diligence and support for international best practices play a critical role in drawing more capital in a challenging fundraising environment, given market conditions have shifted their preference toward liquid assets rather than local alternative investments. Non-Financial Additionality: i) IFC will strengthen the Fund’s capacity on social sustainability, with a focus on improving its ability to identify and expand financing opportunities for women-owned enterprises. Currently, gender-focused financing accounts for roughly 20% of the portfolio. IFC’s support will address existing biases and technical gaps to increase this share and enable the Fund to channel at least 25% of its use of proceeds to women-owned enterprises to expand its factoring operations.

Indicator	Metrics	Comments
Number of Outstanding Loans, Women-led MSMEs	number
Value of Outstanding Loans, Women-led MSMEs	$
Women-led enterprises as a share of reference MSME loan portfolio	%

The proposed investment consists of up to US$40 million, equivalent in PEN or up to 20% of the total commitments in Compass – Fondo de Inversion Adelanto de Efectivo, an unlisted, closed-ended, PEN-denominated trade receivables fund launched in 2015 that invests in short-term receivables from Peruvian entities offering working capital solutions through traditional factoring and reverse factoring for companies in Peru.. The Fund provides liquidity to suppliers (small and medium enterprises – SMEs), while assuming the credit risk of the payors (corporates and middle market companies).
The main E&S risks and impacts related to the Project derive from the Fund’s capacity to assess and manage risks associated with payors and suppliers. E&S risks of investees are expected to be medium and potentially related to Occupational Health and Safety (OHS), labor and working conditions, resource efficiency, pollution prevention, community health, safety and security, and impacts on biodiversity. The project has therefore been categorized as FI-2 according to the IFC's Sustainability Framework. The eligibility criteria will exclude investments in payors and suppliers involved in high-risk business activities, coal-related activities, K-12 activities, and high-risk geographies. Applicable requirements for the project include IFC’s Exclusion List, Peruvian E&S laws and regulations, and the key objectives of IFC Performance Standards (PSs).
IFC invested in the Fund between 2020 and 2024. Although a global Sustainability Department and a Sustainability Committee operate transversally across Vinci Compass to oversee E&S aspects of investees, an E&S specialist at the Fund level to screen, assess and monitor E&S risks of the Fund investments will be required. Vinci Compass has a Responsible Investment Policy from December 2023 applicable at corporate level, as well as an Environmental & Social Management System (ESMS) from June 2020, which outlines the E&S processes and responsibilities throughout the investment cycle in line with IFC risk management standards, including training provisions. The E&S procedures during onboarding, engagement and monitoring include screening payors and suppliers against IFC Exclusion List, Peruvian E&S laws and regulations, and key objectives of IFC PSs. Payors involved in coal-related and high-risk activities are not eligible. Vinci Compass’ Human Resource policies and procedures are generally aligned with IFC PS2.
As part of the Project, the Fund and Vinci Compass SAF Peru will be required to: (1) update and enhance the ESMS to i) categorize payors and suppliers according to IFC’s provisions, ii) screen-out payors and suppliers involved in coal-related activities, K-12 activities, Peruvian high-risk geographies, and high-risk business activities, and iii) strengthen E&S assessment and monitoring processes and outputs; (2) Screen payors and suppliers against the IFC’s Exclusion List, Peruvian E&S laws and regulations, and key objectives of IFC PSs; (3) appoint and assign an E&S Officer experienced in E&S Peruvian laws and regulations and E&S risk management; and (4) build internal E&S capacity.

IFC will periodically disclose the names, locations and sectors for Category A sub-projects that have been supported by IFC investments through financial intermediaries, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of July 1, 2020.

Not applicable.

Vinci Compass FAE II has an established and functioning ESMS aligned with IFC Performance Standards. The ESMS includes a Responsible Investment Policy, IFC-aligned Exclusion List, structured E&S screening and assessment procedures, and risk-based monitoring integrated into the investment decision-making and portfolio management processes. E&S risks are identified, assessed, and mitigated proportionately to the risk profile of SME and corporate investments supported by the Fund (factoring and reverse factoring).
Senior management demonstrates commitment and adequate resourcing for E&S implementation, although capacity could be enhanced. The Fund also maintains effective grievance and external communication mechanisms, robust labor and OHS practices, and systematic supervision of portfolio companies.

S.no	Title	Anticipated Completion Date
1	Update and enhance the Environmental & Social Management System (ESMS)	06/30/2026
2	Appoint and assign an E&S Officer	06/30/2026
3	Build internal E&S capacity	07/15/2026