25630 - CrediQ

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 Proposed Investment

Project Number

25630

Company Name

Grupo Financiero CrediQ Corp.

Date SPI Disclosed

May 11, 2007

Country

Central America Subregion

Industry

Financial Markets

Projected Board Date

Jun 15, 2007

Status

Completed

Sector

Finance Companies

Department

Regional Industry FIG LAC & EUR

Environmental Category

C - No Impact

Previous Events

Approved : Jun 28, 2007
Signed : Jun 28, 2007
Invested : Sep 24, 2007

Project Description

The proposed investment involves a package of long-term senior IFC loans of up to $20 million in aggregate to support the expansion of four automotive finance subsidiaries of Grupo Financiero CrediQ (CrediQ) in El Salvador, Honduras, Nicaragua and Costa Rica. The investment will help CrediQ: - increase the volume of its lending to small and medium sized enterprise (SME) purchasers of vehicles for commercial use; - ease the debt repayment burden for such borrowers by providing longer tenor; and - diversify its funding sources.

Sponsor / Cost / Location

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

Development Impact

The project will help: - increase the access to finance for the important Central American SME market segment thereby fostering its development, and - deepen the regional financial markets by enhancing the competitiveness of a well positioned non-bank financial institution through enabling it to provide loans of longer tenor. The project is expected to have the following development impact indicators: - Increased size of CrediQ’s SME loan portfolios by at least 30% by 2012; - Institution Building through an increase in CrediQ’s consolidated weighted average loan tenor from 4 to 5 years by 2012. By contributing to development of the SME sector, the project will help generate additional income and reduce unemployment levels, thereby contributing to poverty alleviation. The project will also help demonstrate the profitability of lending to SMEs, which will in the long-term help to reduce borrowing costs for SMEs, further bolstering their income.

Although CrediQ currently borrows from major regional and international banks, the banks are limited by exposure guidelines in terms of the tenors they can provide to CrediQ’s operating subsidiaries. In order to address these constraints, CrediQ has securitized part of its El Salvador loan portfolio. However, the smaller portfolios of the subsidiaries in CrediQ’s other Central American markets are more difficult to securitize. Therefore, CrediQ has found it difficult to attract long-term debt on reasonable terms from sources other than development finance institutions such as IFC. Without such funding, CrediQ would not be able to expand the niche it has developed in providing SME borrowers with loan maturities longer than four years. Finally, the demonstration effect of a well-structured transaction with IFC will strengthen CrediQ’s prospects for attracting additional sources of long-term funding in future.

Contacts

For Inquiries About the Project, Contact

Ricardo Perdomo Autopista Sur y Av. Las Amapolas, Col. San Mateo, Apdo Postal 01-55 San Salvador, El Salvador Telephone: 503-2248-6400 Fax: 503-2248-6518 E-Mail: rperdomo@grupoq.com

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: 202-974-4384E Mail: Webmaster

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

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 Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

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

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Expected Development Contribution

Environmental and Social Issues - Category

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer