Finandina is a finance institution established in 1977. The company maintains strong ties to vehicle dealerships and others within the transport sector. Finandina has over $314 million equivalent in assets, $174 millions equivalent in deposits and an equity base of $35 million equivalent as of January 31, 2008. Currently Finandina has a long-term credit rating of AA+ (national scale) by BRC Investor Services (Moodys).


Shareholder Composition: % Ownership

Comerciales Intergrados Sociedad Anonima – Cintesa: 75.820 %
Finanzauto Factoring S.A.: 7.620 %
Comercial Automotriz de los Andes Ltda. Comandes Ctda: 6.085 %
Comercial Automotora S.A. Comauto S.A.: 4.498 %
Motores y Maquinas S.A. Motorysa: 3.068 %
Casa Toro S.A.: 2.909 %

Total: 100.000 %

IFC is considering investing up to $17 million equivalent for an equity stake of up to 10% in the company. This increased capital base will assist in the implementation of the growth plan put forth by the management and owners.

16.18 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	16.18

* These investment figures are indicative

Finandina is headquartered in Bogota, with 6 regional branches located in Cali, Medellin, Barranquilla, Bucaramanga, Ibague and Villavicencio.

Broad access to finance across income segments and productive sectors is key in promoting the development of any emerging economy. The transport sector is vital to support the export oriented growth being witnessed in Colombia these days. IFC by teaming up with Finandina will fill that gap by financing MSMEs active in this line of business.

IFC is expected to play an important role in the project, as it will:

- Support an independent finance company that offers affordable financing solutions to MSME clients, which will help increase credit penetration in Colombia.
- Help deepen access to finance to smaller and medium sized companies, which have limited funding from large banks or the capital markets.
- Colombia’s continued economic development rests on its ability to efficiently transport its goods across the country. This projects ties in well with the Government’s overall objective of promoting SME finance and export growth in the country.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the FI portfolio for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the FI portfolio and considering IFC’s investment. The Applicable Performance Requirements are:

- The IFC FI Exclusion List; and
- The applicable National Social and Environmental Laws and regulations

Based on the Applicable Performance Requirements and FI SEMS and capacity review, the project will be required to:

- Develop a Social & Environmental Management System (SEMS), within three months of the first disbursement, to the satisfaction of IFC
- Identify, prior to the first disbursement, qualified persons to manage and implement the SEMS
- Commit to implement the SEMS, to ensure that its investments are in compliance with the Applicable Performance Requirements
- Submit a periodic report to IFC as per a format to be provided by IFC