Credivalores is controlled by Mr. David Seinjet and his family through several companies holding 57% of the Company. Mr. Seinjet is a recognized business man and industrialist with interests in the sugar mill business.

In 2010, ACON Investments, invested in Credivalores acquiring up to this date 33% of its equity. ACON is an international private equity investment firm managing capital through varied investment funds and special purpose partnerships. ACON focuses on investing in companies where it can add value as an active shareholder, while providing support and additional resources to management. The fund was created in 1996 and has managed over US$1.5 billion in investments in the United States, Europe and Latin America. The fund maintains offices in Washington DC, Los Angeles, Mexico City, and Sao Paulo. Among ACON’s investors are the French, Dutch and German development banks, Proparco, FMO and DEG, respectively.

The proposed project involves a senior loan from IFC’s own account to the Company as a Peso-linked loan, in an amount not to exceed US$25 million (equivalent).

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

Credivalores is headquartered in Bogota, Colombia. It is currently present in 22 of Colombia’s 32 states, covering over 20% of the municipalities of the country with a network of 27 branches.

Colombia continues to have a low banking penetration (Loan penetration to GDP 33%), especially in low-income segments of the population. Consumer loans that are billed and collected through Public Utility companies are an attractive channel to provide financing solutions at effective costs to the underserved individuals.
The Project is expected to have a significant development impact as it will allow middle and low income households to have access to formal sources of financing in medium and small cities of Colombia, instead of going to loan sharks at interest rates as high as 280% per annum and therefore promoting a better income distribution in the Country.

i. IFC will provide long-tenor (up to 5 years) senior debt in local currency that is otherwise difficult to obtain in the local market.
ii. IFC''s stamp of approval, will enhance the credibility and visibility of the Company in the local and international market, and thereby increase funding alternatives, particularly important to Credivalores as the Company does not raise deposits.
iii. IFC will support the growth and consolidation of an innovative platform of financial and retail payments services for a wider segment of the low income population in Colombia, allowing the company to continue supporting the inclusion of its clients to the formal financial sector.

The proposed investment consists of a Senior Loan of up to $ 25 million to Credivalores, a non-banking financial institution (“NBFI”) focused on lending to low and middle income households in medium and small cities in Colombia. The loan will be earmarked at originating consumer loans that are billed and collected through Public Utility (“PU”) companies in several cities of Colombia, allowing increased funding for individuals that otherwise may not have access to credit. Credivalores focuses on four financial products: payroll deduction 66%, consumer lending through public utilities 14%, financing of revocable insurance policies 11%, and payroll deduction loans 11%. As the project will only support consumer lending at the base of the pyramid, there are no environmental and social risks associated with the investment. The project has therefore been categorized as FI-3 in accordance with IFC’s Environmental and Social Review Procedure. The client will be required to enhance its Grievance Mechanism Procedure and commit to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions (PS2).