Santo Domingo/Washington, D.C., December
12, 2012—IFC, a member of the World Bank Group, today announced a
five-year, local-currency loan of 195 million Dominican pesos (approximately
$5 million) to Fondo Para el Desarrollo, Inc (FONDESA). The loan will enable
FONDESA to increase its financing for micro-entrepreneurs in the Dominican
Republic and strengthen micro-finance services in rural areas, where there
is lower banking penetration.
FONDESA, a non-governmental organization
with plans to transform into a fully-regulated financial institution in
the next year, was created in 1982 to provide financial services and technical
assistance to micro-entrepreneurs across the Dominican Republic. IFC’s
investment in FONDESA aligns with the World Bank and IFC’s Country Partnership
Strategy in the Dominican Republic, which aims to support sustainability
and promote access to finance.
“FONDESA provides loans to small entrepreneurs
and creates an opportunity for rural and underserved populations to participate
in the country’s economic growth,” said Cristian Reyna, Chairman of FONDESA.
“Since IFC is a global leader in microfinance, we look forward to beginning
a long-term partnership that can ultimately benefit and expand our offerings
to our clients.”
“The Dominican economy is one of the
most dynamic in the region and micro-enterprises play a key role in economic
growth and poverty alleviation,” said Jun Zhang, IFC Regional Manager
for the Caribbean. “IFC’s financing to FONDESA will help them expand
their micro-enterprise loan portfolio and aligns with IFC’s Caribbean
strategy to promote economic development through financial inclusion.”
The investment is funded with proceeds
from the IFC Taino Bond, which was issued earlier this month. The bond
is IFC's first domestic issue in the Dominican Republic and raised 390
million Dominican pesos (approximately $10 million). It is also the first
IFC bond in Latin America and the Caribbean whose proceeds are directly
linked to investments in the local private sector, creating access to local-currency
finance while providing a viable channel for domestic savings to be directed
into productive long-term investments.
Over the last three years, IFC has invested
$638 million in the Caribbean. In 2011 alone, IFC’s clients supported
more than 28,000 jobs in the region and reached more than 130,000 patients,
2,300 students, and 4 million customers through power generation.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
FONDESA is an NGO with plans to convert
to a savings and credit bank in the next year. FONDESA was created in 1982
by the Asociación para el Desarrollo – APEDI, which is also an NGO established
in 1961 with the objective of promoting the economic and social development
of the Dominican Republic. APEDI has a long track record of creating several
institutions that promote progress and development. FONDESA is headquartered
in Santiago, the second largest city in the Dominican Republic, with operations
in 16 provinces of the country through 36 branches. FONDESA provides micro-loans
in the regions where these branches are located and, furthermore, is expected
to expand its microfinance operations to other municipalities in the upcoming