Covinoc has, for more than 50 years, provided recovery and portfolio management services to financial intermediaries in Colombia. Shareholder Composition: Inversiones La Costa: 21.78% Delta Asociates J.C.: 11.60% Lantro S.A.: 22.31% Ircanda S.A.: 22.31% ARIGU y Cia. C.S.A.: 20.00% Nicolas Gomez y Compañia: 1.00% Nicolas Gomez Nieto: 1.00%

The proposed investment consists of an equity investment in common shares for up to US$5 million earmarked at strengthening Covinoc’s ability to administer pools of non-performing assets. This investment is expected to assist the Company in the implementation of the growth plan put forth by its management and shareholders.

5.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	5.0

* These investment figures are indicative

Covinoc is headquartered in Bogota, Colombia. The company has offices in 14 cities of the country, allowing it to have a national operational coverage.

IFC’s involvement in this project would allow it to positively impact the market place by building capacity in Colombia’s financial market. The project is expected to increase the ability of financial intermediaries in the country to offload their assets, particularly non-performing ones, improve liquidity and devote these resources to originate new transactions, increasing this way their offer of credit.

IFC’s investment in Covinoc is expected to further develop the distressed asset resolution market potentially resulting in high developmental impact at different layers: Increase financial institutions’ ability to outsource the resolution of non-performing assets. Aid to develop secondary debt markets, while promoting international best practices in terms of collections and distress assets resolutions. Encourage international insolvency standards and creditors' rights.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. This project involves IFC support for investment in portfolios of non-performing assets, and considering the nature of activities supported, the project will be required to:

Develop a Social & Environmental Management System (SEMS)/procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, to ensure that all investments are screened and processed to identify environmental and social risks, if any, and to ensure that acquired portfolios with potential environmental risk do not have subprojects on the IFC FI Exclusion List or subprojects that have substantial unresolved social or environmental issues;
Nominate an environmental officer prior to disbursement
Ensure that investee organizations managing the assets have a SEMS/procedure relevant to their business process that is satisfactory to IFC, to ensure that the loans are operating in compliance with the Exclusion List and Applicable National Environmental and Social Laws and regulations, or have an action plan to achieve the same within a reasonable time frame;
Submit a periodic report to IFC as per a format to be provided by IFC