IDB Invest provided a loan to ueno bank in Paraguay for a total of 150,000 million guaraníes (approximately $20 million). The project seeks to support the growth of Ueno’s portfolio for micro, small and medium-sized companies (MSMEs) in Paraguay, in addition to promoting financial inclusion through credits to MSMEs that do not have access to the traditional financial system.

The loan will be financed by IDB Invest in local currency in two tranches of 75 billion guaraníes each. The funds will be obtained through a public issuance in the capital market under the third local issuance program registered by IDB Invest with the Superintendency of Securities of Paraguay in 2023.

This is the sixth issuance of guaraní-denominated bonds, with a total amount issued of 75 billion guaraníes (approximately $10 million) over a three-year period. This amount corresponds to Tranche I of the operation approved with ueno bank. CADIEM Casa de Bolsa S.A. acted as intermediary broker for this issue.

MSMEs in Latin America and the Caribbean are key to employment, representing 66% of informal employment. In Paraguay, they face significant barriers to accessing medium- and long-term financing, creating a financing gap equivalent to 14% of GDP. In addition, financial inclusion is low, with only 54.5% of adults having access to a bank account, and even fewer accessing formal credit, below the regional average.

IDB Invest financing will help improve access to credit for MSMEs in Paraguay. The project includes technical assistance for ueno bank to strengthen its credit methodology, focusing on segmentation, identifying opportunities, optimizing tools and scoring recommendations. A roadmap will also be developed to promote banking and digitalization of MSMEs, as well as a methodology to measure the impact of its digital portfolio.

James Scriven, general manager of IDB Invest, said: “We are pleased to join forces with ueno bank to support the financial inclusion of MSMEs in Paraguay, boosting their economic and social development. Access to financial services allows MSMEs to better manage their resources and promote innovation. We are also proud of our sixth issue of a local currency bond in Paraguay, with a diversified investor base, which represents a key step to strengthen this sector in the country, and contributes to the development and economic resilience of the country.”

Juan Gustale, president of ueno bank, said: “This financing represents a fundamental opportunity to expand access to credit in a key sector for the sustainable development of Paraguay. It is part of our commitment to promote economic growth, especially among MSMEs, which are the engine of the local economy. At ueno bank, we are proud to be part of this transformation towards a more inclusive and accessible financial system.”

The deal with ueno bank is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure) and SDG 10 (Reduced Inequalities).

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 ueno bank

With a focus on innovation and accessibility, ueno bank has established itself as the first 100% digital and fastest-growing bank in Paraguay. Since December 2021, it has managed to build the largest customer base of any financial institution in the country, with more than 2 million users as of October 2024. It offers a financial ecosystem that not only facilitates daily transactions in a safe, simple and digital way, but also offers a unique service model in Latin America, with human and technological attention 24 hours a day, 7 days a week. ueno bank is a member of the United Nations Global Compact and is the first and only entity regulated by the Central Bank of Paraguay to have received the Integrity Seal from the National Anti-Corruption Secretariat (SENAC) and the Ministry of Industry and Commerce (MIC). For more information: ueno.com.py

About CADIEM Casa de Bolsa

CADIEM Casa de Bolsa S.A. has been in the Paraguayan Stock Market for 20 years. It was founded in 2003 at the very beginning of the stock market, with the aim of contributing to its development through the offer of various financial products and services. A market leader, with the largest portfolio of investors in the country and a broad portfolio of products, it seeks to improve people's quality of life through education on savings, investment and personal finances.