Washington, D.C., February 22, 2016
— IFC, a member of the World Bank Group, is providing a $200 million
investment to Banco Itau Chile to support the expansion of access to finance
for small and medium enterprises (SMEs), including women-owned SMEs, helping
to foster the development of a key sector for the Chilean economy.
IFC’s financing consists of a 5-year
$100 million loan on IFC’s own-account and a 3-year $100 million syndicated
loan, for which lenders are Banco Santander, Commerzbank, and Wells Fargo.
Of the aggregate US$200 million, US$50 million will be allocated towards
women-owned SMEs, supported by the Women Entrepreneurs Opportunity Facility,
through IFC’s Banking on Women Program.
According to SME Finance Forum, 200,000
MSMEs are estimated to be operating in Chile, employing about 40% of the
country’s workforce. Despite the relative high penetration of the banking
system in Chile, MSMEs still face an estimated $40 billion credit gap.
Women-owned businesses are a large and underserved market segment
in the country, representing 30 percent of all the micro, small and medium
enterprises. According to an IFC survey, 66 percent of women-owned businesses
in Chile are either underserved or not served at all by the financial system.
IFC's investment will provide longer-term
funding and tailor-made structures for the expansion of Banco Itau Chile’s
financing to SMEs, including female-owned businesses, helping to boost
the sector’s growth and enhance its productivity. By doing so, it will
help promote inclusive growth and job creation in Chile, as well as additional
developmental benefits that come with improved credit access to women,
such as increased access to quality education, health and housing.
This is IFC’s first investment in Banco
Itau Chile, and the second in Itau Unibanco Group under IFC’s Banking
on Women program, which is playing a catalytic role in helping financial
institutions to serve women entrepreneurs in a sustainable and profitable
way. Since its launch in 2010, it has made 32 investments totaling more
than $950 million globally. Through IFC’s Banking on Women program, this
project is supported by the Women Entrepreneurs Opportunity Facility, the
first-of-its-kind global facility dedicated to expanding access to capital
for women entrepreneurs, launched by IFC and Goldman Sachs’ 10,000
Women initiative in 2014.
“We are pleased to partner with Banco
Itau Chile to help promote the growth of SMEs in Chile, and especially
of the women-owned enterprises,” said Salem Rohana, IFC Country Manager
for Argentina, Chile, Paraguay and Uruguay. “Helping to expand the
growth of this sector is a critical part of IFCs strategy to expand opportunities
and inclusion in Chile.”
This financing to Banco Itau Chile is
part of IFC’s strategic focus on supporting local financial markets to
achieve development impact. IFC aims to achieve these goals through the
use of innovative financial products and mobilization, fostering micro,
small and medium enterprises, encouraging corporate social responsibility,
protecting natural resources through environmentally-sustainable business
practices, and promoting business expansion into other emerging markets.
For more information about IFC in Latin America and the Caribbean, visit
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
About Goldman Sachs 10,000 Women
The Goldman Sachs 10,000 Women
initiative is a campaign to foster economic growth by providing women entrepreneurs
around the world with a business and management education and access to
capital. The initiative has reached women from across 56 countries through
a network of 100 academic, nonprofit, and bank partners. In partnership
with International Finance Corporation (IFC), 10,000 Women launched
a $600 million finance facility in 2014 to enable 100,000 women entrepreneurs
to access capital. The Goldman Sachs 10,000 Women/ IFC Women
Entrepreneurs Opportunity Facility aims to help close an estimated $285
billion credit gap for women-owned SMEs around the world. To date, the
facility has completed 19 investment and advisory engagements totaling
$334 million in 13 emerging economies.