Project Description
The proposed investment in Banco Compartamos, S.A. de C.V.’s (“Compartamos”, or the “Bank”) fits well with IFC’s industry strategy to support locally-based microfinance companies that have a developmental focus. The proposed investment will be in the form of a 5-year Parallel Loan for up to MXN400 million ($32 million equivalent) to support the Bank’s loan portfolio growth.
The proceeds from the credit line will be used by Compartamos to increase and diversify its funding base by obtaining medium-term funding for on lending to small and micro enterprises in Mexico. The project represents an opportunity for IFC to support a long-standing partner in expanding its operations and overcoming the current liquidity conditions in the sector. At the same time, IFC would be mobilizing funds from a Mexican commercial lender willing to participate under similar conditions.