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IDB Invest, BAC Credomatic Mobilize Resources to Expand Financial Access to El Salvador’s Women-Led SMEs

IDB Invest is providing a $60 million loan to BAC Credomatic El Salvador through a mobilization conducted with Banco de Santander S.A. The disbursement complements an initial $60 million loan signed in 2020 and will expand financing to small and medium-sized enterprises (SMEs), while also supporting women-led SMEs through BAC Credomatic El Salvador's Mujer Accelera program.


IDB Invest will provide advisory services to BAC Credomatic to strengthen the program's financial and technical assistance services. In addition, it will identify the digital transformation needs of its women-led SME clients and support them in transforming their business model towards greater use of digital channels.

The agreement includes funds from the Women Entrepreneurs Initiative (We-Fi), an alliance that aims to facilitate financing and access to markets for companies led by women. With the support of We-Fi, the transaction will also benefit from performance-based initiatives, which will allow BAC Credomatic El Salvador to obtain incentives of up to $450,000 contingent on its SME credit portfolio growing from 27% (or 846 loans in 2020) to 45% (1,770 loans by 2025).


This transaction is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced inequalities (SDG 10) and Partnerships to achieve the goals (SDG 17).


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 $14.1 billion in asset management and 325 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.


About BAC El Salvador


BAC El Salvador is part of the BAC Credomatic Financial Group, a leader in Central America due to its technological innovation and the most robust digital platform in the region. BAC El Salvador has a strong share in the personal banking market and a significant presence in the corporate and business sectors. As of December 31, 2019, it had 2,300 employees and more than 50 service points, in addition to being the country's leader in electronic payment methods. In 2007 BAC El Salvador acquired Propemi (Program for the Promotion of Small and Microenterprises) in El Salvador, which has allowed it to position itself as a benchmark in the country's SME segment. With the Mujer Acelera Program, created in 2017, it seeks to offer financial and non-financial solutions to SMEs led by women. To date, 864 loans have been granted for an estimated amount of $63 million, which has been complemented with technical assistance, support and training, granted through the Business Development Center where more than 500 businesswomen have been served.


About Banco Santander


Banco Santander, S.A., Grupo Santander, is a Spanish multinational financial services company headquartered in Madrid and Santander, Spain. Additionally, Santander maintains a presence in all global financial centers as the sixteenth-largest banking institution in the world. Although it is known for its European banking operations, it has expanded its operations in North and South America and, more recently, in mainland Asia. The Financial Stability Board considers it a systemically important bank.