IDB Invest, Banco Mundo Mujer Promote Credit for Women Microentrepreneurs in Colombia
IDB Invest has granted financing to Banco Mundo Mujer S.A. (BMM) denominated in Colombian pesos, equivalent to up to $30 million. The three-year transaction will increase access to credit for women-led microenterprises in Colombia.
The financing will support the growth of BMM's portfolio in the microenterprise segment to allocate resources to working capital or the purchase of assets that allow the operation and progress of microenterprises.
IDB Invest will provide BMM with advisory services with the aim of reinforcing the bank's practices in promoting gender equality internally. To this end, IDB Invest will help the bank to identify gender gaps through the WEP (Women Empowerment Principles) tool and will provide recommendations on corporate policies and practices that contribute to closing such gaps. This will be accompanied by an awareness workshop on the value of diversity, aimed at BMM's senior management.
This deal is expected to contribute to four United Nations Sustainable Development Goals (SDGs): End Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), 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 $13.1 billion in asset management and 385 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 Banco Mundo Mujer
With 36 years of experience granting microcredit to Colombians, 30 as a Foundation and 6 as a Bank, Mundo Mujer contributes to the economic and social development of the lower-income working communities of the country, providing financial alternatives with easy access and quick response with few requirements, minimum guarantees and personalized attention. It is currently the number one private microfinance bank in Colombia, with the highest gross portfolio balance in microcredits and number of clients, according to figures from the Colombian Association of Microfinance Institutions (Asomicrofinanzas), as of September 2021. Banco Mundo Mujer offers its clients an offer of face-to-face, telephone and digital service channels such as the mobile app to make inquiries, payments, bank transfers and filing of requests, complaints and claims, among others. Banco Mundo Mujer grants urban, rural and agricultural microcredit, credit for small businesses and for investments. In savings products it offers: Traditional Savings Account, Chikiteens Savings Account, Cuenta tu Meta (savings with a purpose), Renta Más Savings Account and CDT Progrese. Mundo Mujer, as a community bank, is overseen by the Financial Superintendency of Colombia and is affiliated with Fogafín.