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IFC Provides $30 Million to Chile’s Banco Internacional to Expand Credit for Agribusiness and Women


In Washington, D.C.:
Adriana Gomez
Phone: +202-458-5204
E-mail: AGomez@ifc.org

In Chile:
Banco Internacional (BI)
Patricio Aros Monsalve
International Business Head
paros@bancointernacional.cl


Santiago, Chile/ Washington, D.C., July 24, 2013—IFC, a member of the World Bank Group, will provide $30 million to Chile’s Banco Internacional to help it establish a new agribusiness unit that will focus on expanding financing for small and medium enterprises and increasing the range of financial services provided to women entrepreneurs.

Banco Internacional has been an IFC client since March 2010, when it became the first Chilean bank to join IFC’s Global Trade Finance Program. This new operation is IFC’s first financing in the Southern Cone that is focused on expanding access to finance for women entrepreneurs.

Expanding access to long-term financing to Chilean SMEs in the agribusiness sector is essential to support job creation and economic growth. Agriculture is the second-largest contributor to Chile’s gross domestic product, and 90 percent of agribusinesses are SMEs. Yet SMEs in this sector have few options for formal financing.

Women entrepreneurs are also a growing social and economic force in Chile. However, the credit gap for formal women-owned SMEs is approximately $4.5 billion, representing an opportunity for financial institutions to close te gap and help these SMEs grow.

“IFC’s financing will help Banco Internacional consolidate its position as an innovator and a pioneer in supporting important economic sectors in Chile”, said Julio Jaraquemada, President of Banco Internacional. “We welcome IFC’s unique global and technical expertise supporting the financial sector in emerging markets”.

Pablo Verra, IFC’s Head of Financial Markets in the Southern Cone, noted: “Through this transaction, IFC confirms its long-term partnership with Banco Internacional, a key player supporting SMEs in Chile. IFC looks forward to expanding its presence in Chile by supporting local financial institutions such as BI that are strongly aligned with our mission.”

IFC’s strategy in Chile focuses on promoting sustainable investments in key sectors of the economy that contribute to job creation, expansion of services, and to more equitable growth. These sectors include tertiary education and vocational training, infrastructure and energy, and financial services that meet the needs of SMEs and low-income groups. At the end of fiscal year 2013, IFC’s portfolio in Chile—both on its own account and mobilized from third parties—amounted to more than $1 billion. For more information about IFC in Latin America and the Caribbean, visit: www.ifc.org/lac.

About IFC
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.

About Banco Internacional
Banco Internacional initiated its activity in 1944, initially as Banco Israelita de Chile, and then turned into Banco Internacional in 1981. At present, it has 508 employees, owns a commercial network of 16 branches, including an agribusiness office in Temuco, covering five regions and serving over 11,500 customers. The bank offers a wide variety of credit and non-credit products and financial services, such as factoring, leasing, trade finance, treasury, real estate, insurance, funds, among others.