Asunción, Paraguay, June 5, 2019 —
IFC, a member of the World Bank Group, is providing a $25 million loan
to Banco Familiar S.A.E.C.A. to support the expansion of access to finance
for micro, small and medium enterprises (MSMEs), helping create jobs and
promoting economic growth in Paraguay.
IFC’s financing consists of an up to 5-year
$8 million loan on IFC’s own-account and an up to 3-year $17 million B
loan syndicated to responsAbility Investments AG and Symbiotics Investment
Management SA, two impact investment companies. This is IFC’s first investment
in Banco Familiar, and the first syndicated loan via IFC’s B-lender program
in Paraguay. This financing will allow Familiar to increase the volume
and average tenor of its product offering to MSMEs, offering wider support
to their expansion plans.
According to the SME Finance Forum, more
than 222,000 MSMEs operate in Paraguay, employing more than 70% of the
country’s workforce and playing a central role in job creation. Improving
access to finance for MSMEs and strengthening their competitiveness are
thus crucial for the country’s economic development. Despite this,
the MSME sector financing gap in Paraguay is estimated at $ 4 billion.
“IFC’s investment will support Banco Familiar’s
expansion in the MSME segment, an important component of the strategy we
have been implementing since 2018. Offering longer tenor funding will allow
us to increase the support to our MSMEs clients,” said Hilton Giardina,
CEO of Banco Familiar. “Furthermore, the participation of other investors
in the financing will help diversify and strengthen Familiar’s funding
sources,” he commented.
Banco Familiar provides services to a wide
spectrum of clients, from retail to corporates. With 54 branches across
the country, Familiar is currently the fourth largest branch network among
“IFC is very excited to partner with Banco
Familiar, supporting the expansion of its business and the growth of MSMEs
in Paraguay,” said David Tinel, IFC Country Manager for Argentina,
Chile, Paraguay and Uruguay. “Supporting MSMEs is a key component
of IFC’s strategy in the country as that sector plays a critical role
in stimulating the development of a dynamic, competitive and inclusive
economy, creating more jobs and promoting Paraguay’s economic growth,”
In the past three fiscal years, IFC has committed
approximately $6 billion in the financial sector in the Latin America and
the Caribbean region, in long-term investments including mobilization.
This financing to Banco Familiar is part of IFC’s strategic focus on supporting
local financial markets to increase the development impact of IFC’s investments.
IFC’s strategy in Paraguay seeks to strengthen
the country’s competitiveness by providing financial products and advisory
services in key economic sectors, focusing on improving physical and digital
connectivity to boost export-led growth and economic diversification, managing
natural capital to integrate the agricultural and beef sectors into sustainable
value chains, and increasing access to finance for MSMEs to support the
creation of more and better jobs. For more information about IFC in Latin
America and the Caribbean, visit www.ifc.org/lac.
About Banco Familiar S.A.E.C.A.
Banco Familiar is a locally-owned private
bank originally constituted by a group of retail merchants in 1967 as a
non-banking financial institution. In 2009, Familiar started operating
as a bank, and expanded its operations in terms of product offering and
geographical outreach. Headquartered in Asunción, the Bank currently employs
1,088 staff, has 54 branches across the country and provides services to
individuals, MSMEs and corporates. The Bank holds a 3.9% market share in
terms of gross loans and 3.4% in terms of deposits as of December 2018
and serves more than 600,000 customers. For more information, visit www.familiar.com.py.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,