IDB Invest Boosts Small and Midsized Businesses Led by Women and Green Financing in El Salvador through Bancoagrícola
IDB Invest provides $70 million in financing to Bancoagrícola of El Salvador. The 10-year tenor deal seeks to boost the growth of small and medium-sized enterprises (SMEs), women-led SMEs, and green credits related to climate mitigation. This will allow Bancoagrícola to solidify its strategy and provide tailored offerings in these segments.
The project has a blended financing component with economic incentives, through the support of the Women Entrepreneurs Financing Initiative (We-Fi), an alliance that aims to expand financing and access to financial markets for women-led businesses. IDB Invest will provide the issuer with advisory services and a monetary bonus subject to the achievement of objectives related to the SME Women's portfolio.
“Improving access to financing for SMEs is one of the greatest challenges in Latin America and the Caribbean. Together with Bancoagrícola, we are proud to promote the growth of SMEs led by women in El Salvador through this project, which will also support climate change mitigation thanks to the growth of the green portfolio in the country. Following our 2025 Vision, we seek to encourage sustainable and inclusive growth in El Salvador to achieve true long-term progress,” states James Scriven, CEO of IDB Invest.
“We thank IDB and IDB Invest for their trust and support to the Salvadoran productive sector; also to our clients, since it is thanks to their preference and commitment that we can continue to attract key investments to inject more capital into SMEs, SMEs led by women and green projects. We are happy and proud of the vote of confidence placed in Salvadorans and in Bancoagrícola to continue promoting sustainable development for the well-being of all,” states Rafael Barraza, executive president of Bancoagrícola.
The deal is part of the WeForLac program of the We-Fi initiative that seeks to increase access to financing for women entrepreneurs. Through this program, advisory services will be provided to strengthen Bancoagrícola's Women's SME strategy and create capacities to reach a greater number of SMEs led by women. Likewise, support will be given to strengthen the general capacities for impact measurement.
The deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10), Climate Action (SDG 13) and Partnerships for 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.
With over 67 years in the Salvadoran market, Bancoagrícola has positioned itself as the leading banking entity in the country, with more than 1.4 million individual clients and more than 3,600 companies, through a wide physical network and coverage geography in the country. In 2006, its leadership is strengthened with the acquisition by Grupo Bancolombia. Bancoagrícola has been characterized by its mission of contributing to the growth and sustainable economic development of the country to achieve the well-being of all, through a system that promotes financial inclusion, the competitiveness of the productive fabric and supports the construction of more sustainable cities and communities. sustainable.