Washington, D.C., December 9, 2010—IFC,
a member of the World Bank Group, is investing $8 million in El Salvador’s
Apoyo Integral to help provide financial services for micro and small entrepreneurs.
This is expected to benefit 5,000 businesses employing approximately
25,000 people, particularly in rural and semi rural areas that are significantly
Up to $1 million of IFC’s loan will
be converted to common shares of Apoyo Integral, one of El Salvador’s
leading microfinance institutions, to strengthen the company’s capital
and support its expansion. IFC will also provide Advisory Services
supporting Apoyo Integral’s risk-management process and best practices.
“IFC’s investment marks the beginning
of a strong partnership,” said Luis Castillo, President of Apoyo Integral.
“It will help us provide opportunities for El Salvador’s micro
and small entrepreneurs to grow their businesses despite a challenging
economic environment. And it will give us the financial flexibility
to support our own growth strategy.”
Apoyo Integral has 25 offices in El
Salvador and a $75 million portfolio, reaching 48,000 micro and small entrepreneurs.
Paolo Martelli, IFC Director for Latin
America and the Caribbean, said, “This investment aligns with our priorities
for the region by deepening the financial sector and improving access to
services for underserved people. It also strengths our partnership
with a strong local player, helping it grow.”
In El Salvador, IFC focuses on expanding
access to financial services to the poor and underserved by strengthening
financial-market infrastructure and developing and deepening capital markets.
IFC supports best practices for microfinance institutions and business
models that strengthen lending to small and medium enterprises.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit
About Apoyo Integral
Founded in May 2002, Apoyo Integral
is one of the leading microfinance institutions in El Salvador. Its
mission is to provide accessible financial products and services that facilitate
the socioeconomic inclusion of people with minimal access to the benefits
of the country’s growing economy. Apoyo Integral’s services and financial
products include working capital, purchasing fixed assets, buying and remodeling
homes, and debt consolidation. For clients in the agricultural industry,
it also offers products that support improvement and expansion plans. For
more information about Apoyo Integral, visit www.integral.com.sv.