IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a loan in Colombian pesos equivalent to $10 million to Mareauto Colombia SAS, to partially finance the growth and renovation of its fleet of long and short-term car rentals in that country.
The project seeks to increase financing for micro, small and medium enterprises (MSME) in Colombia through an innovative financial solution for the purchasing acquisition of their vehicle fleets. Additionally, the new vehicles will produce less greenhouse gas emissions and are more efficient. Short-term car rentals for tourists also generates additional revenues for the country.
MSME have limited access to financing, especially for equipment with high operational costs, such as vehicles. The rental industry allows for a better cash flow management for companies as cars are not subject to depreciation costs and taxes.
This deal is part of a regional project that had its first operation in January 2019, when IDB Invest and Mareauto Ecuador S.A. signed another financing for $10 million.
This operation potentially contributes to two 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, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
With a fleet of 7,000 vehicles, Mareauto serves the car rental market in Colombia, Ecuador and Peru. It is part of the Ecuadorian business conglomerate Maresa and the private capital fund Kandeo. In addition, the AVIS brand operates for the region. Mareauto Colombia S.A.S. has established itself as one of the main players in the Colombian short and long-term car rental market. Currently Mareauto Colombia S.A.S. has a fleet of approximately 3,000 vehicles, allocating 80 percent to serve the renting business and 20 percent to the Renta Car business. For three years, Mareauto Colombia S.A.S. has stood out for a growth that far exceeds that of the market and competition, positioning itself as one of the main players in the market thanks to an innovative and aggressive strategy.