IDB Invest announces the signing of a syndicated loan with Banco Internacional of Chile to promote increased access to financing for micro, small and medium-sized enterprises (MSMEs) in Chile. The financing package includes $40 million from IDB Invest with a tenor of up to five years, and $215 million mobilized from investors.

MSMEs face challenges in accessing bank credit. In Chile, MSMEs represent around 65.3% of the total formal jobs in the country, but the loans they receive only represent 20% of the total commercial loans.

The deal focuses on a local niche bank that places its strategic focus on MSMEs, and that seeks to expand its commercial and funding relationships with other institutions that will allow it to diversify and increase its financing sources.

Additionally, as part of the financing, IDB Invest will provide advisory services to Banco Internacional to promote a strategic sustainable finance plan aimed at strengthening financing in projects related to climate, gender and social issues. This will include a diagnosis of products and processes in addition to updating the taxonomy to carry out a specific analysis of the sustainable loan portfolio.

As part of IDB Invest's advisory, Banco Internacional will work to define a decarbonization roadmap to identify specific indicators and establish a robust measurement and monitoring system. This includes an action plan to implement the recommendations of the Task Force on Financial Disclosures Related to Climate Change (TCFD).

The deal with Banco Internacional is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), and Industry, Innovation and Infrastructure (SDG 9).

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of sectors. 

About Banco Internacional

Banco Internacional was established in 1944, with more than 77 years of experience in the banking industry in Chile. Since ILC took control in 2015, Banco Internacional has become a distinguished entity in its target segments by expanding and strengthening its value offering. During 2022, growth, improvements in efficiency and adequate risk management allow Banco Internacional to increase its number of Business Banking clients by 7%, achieving a market share of 2.2% in the banking segment. companies, maintaining customer recommendation rates above 80%. Technological advances and the bank's digital strategy allow it to scale its value proposition to more clients with the highest levels of service, also consolidating the personal segment through competitive and digital products.