IDB Invest announced a capital investment of up to 61.2 million soles (approximately $16.2 million) in Caja Municipal de Ahorro y Crédito Huancayo (Caja Huancayo). This investment seeks to improve access to financing for micro, small and medium-sized companies (MSMEs) and benefit customers from vulnerable populations in Peru.

The microfinance industry has been instrumental in reducing financing gaps for small businesses, especially in remote areas of urban centers. Las Cajas Municipales de Ahorro y Crédito (CMAC) are the main sector of this industry in Peru and play a key role in financial inclusion, especially in peri-urban, secondary and rural areas.

Since the modification of the Municipal Cajas Law in 2017, the entry of strategic partners, such as BID Invest, has been allowed into the ownership of these entities, boosting their growth. IDB Invest is the first multilateral to invest in capital in the CMAC system behind the exchange of law, supporting Caja Huancayo's focus on vulnerable communities and populations. This is replenishing its capital to expand its credit portfolio and promote financial inclusion in Peru.

Asimismo, IDB Invest and Caja Huancayo signed a gender, diversity and inclusion (GDI) advisory agreement to create a value proposition for women microenterprises and facilitate their growth in the pyme segment. The project includes an analysis of Caja Huancayo's portfolio and policies to detect gains and opportunities, and a market study to understand the needs of women entrepreneurs, allowing us to design a specific offer for female-led businesses.

IDB Invest will help Caja Huancayo to strengthen its proposal in the Amazon region and its management and impact capabilities as part of the Amazon Financing Network. This support will optimize the collection and analysis of impact data, allowing you to generate commercial perspectives, better understand customers and improve the service offering for SMEs, with a gender focus.

As part of the project, a new corporate governance plan will be created to strengthen and expand the Caja's operations. IDB Invest will have a representative on the Board of Directors, allowing it to influence strategic direction and the implementation of best practices.

The operation seeks to contribute to the following UN SDGs: End poverty (SDG 1), Decent work and economic growth (SDG 8), Industry and innovation (SDG 9), Reduction of inequality (SDG 10) and Production and responsible consumption (SDG 12).

About IDB Invest 

IDB Invest 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 $21 billion in assets under management and over 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 industries. Visit our website idbinvest.org.

About Caja Huancayo

Caja Huancayo is an entity that enjoys a strong financial strength, boasting the local Riesgo Category of A-, with its 35 years of institutional life adding to financial inclusion, with a strong brand presence at the level of the microfinancial system in it Peru, has 227 workshops throughout the country, asimismo, accounts with the trust delivered to more than 2.5 million customers, concentrating 24% in credits and 76% in deposits, it is worth highlighting that it has more than 287 thousand exclusive customers in placements that work solely with Caja Huancayo, with S/ 12,635 on the amount of providing intermediate credit, promotes strategic alliances to secure credit models commercially viable businesses that generate value, and produce an economic impact in vulnerable sectors such as the Amazon and promote female empowerment through its product “Emprende Mujer”, thus fulfilling its mission to improve the lives of its customers.