The Inter-American Investment Corporation (IIC) signed a loan for $12 million with Banco Ficohsa in Honduras to expand its portfolio of small and medium enterprises (SMEs) and access to finance for these types of enterprises, in particular, for women-led SMEs.
The transaction will strengthen Ficohsa's equity base, enabling it to grow its portfolio of SMEs with complementary capital while increasing access to credit for these companies. With the support of the IIC, it is estimated that the entity will see its portfolio of SME clients grow by more than 15% in the coming years. In addition, it will increase the share of women-led SMEs as part of the total portfolio, rising from 32% today to more than 37% by December 2019.
In addition to providing a $12 million subordinated loan with a 10-year term, the IIC mobilized additional resources worth $12 million from the OPEC Fund for International Development (OFID).
The project will also promote a strategic alliance between Ficohsa and ConnectAmericas, a program of the IDB Group to help SMEs in the region to expand to international markets. Ficohsa is the second Honduran bank to participate in this initiative, offering its clients information and tools to internationalize their businesses.
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises and projects to achieve financial results that maximize social and environmental development for the region. With a current portfolio of US$7 billion under management and 330 clients in 20 countries, the IIC works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
About the Grupo Financiero Ficohsa
Grupo Financiero Ficohsa (GFF) is a regional Honduran capital entity, based in Panama, comprised of nine companies: Banco Ficohsa Honduras, Banco Ficohsa Guatemala, Banco Ficohsa Nicaragua, and Banco Ficohsa Panama; Ficohsa Insurance, Ficohsa Brokerage House, Ficohsa Credit Cards, Ficohsa Pension and Ficohsa House of Exchange. GFF is the largest financial group in Honduras and Ficohsa is one of the most important brands in the Central American region.