Thursday, 28 July 2022 15:22

IDB Invest mobilizes $60 million to expand financial access to women-led SMEs in El Salvador through BAC Credomatic El Salvador

Written by Evelyn Alas

IDB Invest grants a $60 million loan to BAC Credomatic El Salvador through a B Loan mobilized with a lender (Banco de Santander S.A.). The disbursement complements an initial $60 million A Loan, signed in 2020, and will expand financing to small and medium-sized enterprises (SMEs) and women-led SMEs through BAC Credomatic El Salvador's Mujer Acelera program.

IDB Invest is providing advisory services to BAC Credomatic to strengthen the program's financial and technical assistance services. In addition, it will identify the digital transformation needs of its women-led SME clients and support them in transforming their business model toward greater use of digital channels.

The agreement includes funding from the Women's Entrepreneurship Initiative (We-Fi), an alliance that aims to facilitate financing and access to markets for women-led businesses.

With We-Fi's support, the transaction will also benefit from performance-based initiatives, which will enable BAC Credomatic El Salvador to obtain incentives totaling up to US$450,000 for achieving results in growing its SME portfolio from 27% (or 846 loans in 2020) to 45% (1,770 loans by 2025).

This agreement is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reducing Inequalities (SDG 10), and Partnerships for Achieving the Goals (SDG 17).