IDB Invest, ILX and Bladex Support Electromobility and Vehicle Financing in Colombia with Finanzauto
IDB Invest, ILX and Banco Latinoamericano de Comercio Exterior S.A. (Bladex) closed a financial package for Finanzauto S.A. BIC that includes two disbursements, one for 100,440 million Colombian pesos and the other for $42 million, which will help expand its financing offer to micro, small and medium-sized companies (MSMEs) and electric vehicles in Colombia.
The transaction will increase access to financing for MSMEs from several economic sectors that acquire a vehicle as a productive asset. Additionally, between 7% and 10% of the amount will be allocated to financing its electromobility portfolio.
IDB Invest provided a credit with two disbursements, one for $100,440 million Colombian pesos and the other for $5 million. Additionally, IDB Invest mobilized resources from ILX and Bladex for an amount of $37 million. This mobilization of resources supports Finanzauto S.A. BIC's funding diversification.
Finanzauto S.A BIC’s business model is centered on micro and small entrepreneurs from diverse sectors and small entrepreneurs from the transport sector where a vehicle is an essential element of their production chain.
IDB Invest will provide Finanzauto S.A. BIC advisory services to generate a value proposition focused on meeting the needs of female entrepreneurs and migrant population.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), Climate Action (SDG 13) and Partnership 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 $15.3 billion in asset management and 375 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.
Finanzauto is a regulated entity and supervised by the Colombian Superintendence of Companies with more than 52 years in the automotive financing market. Finanzauto was created in 1970 as a result of the initiative of the shareholders of Grupo Seissa, to make its commercial business independent of distribution and concession of vehicles and machinery of automotive financing. Finanzauto generates 750 direct jobs and has 150 points of service in the country, and branches in six cities (Bogota, Barranquilla, Bucaramanga, Cali, Medellín and Villavicencio) and is widely recognized nationally by the automotive market.
ILX is the Amsterdam-based manager of emerging market focused private credit fund. The fund provides institutional investors access to investment opportunities of the development finance asset class, by investing in private-sector loans arranged by Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs). The Fund’s investment strategy benefits from the DFI’s experience of investing in EMs, to deliver attractive risk-adjusted returns for its investors, whilst mitigating ESG risks and delivering positive, direct SDG and Climate results by investing in loans that contribute to the ILX Sustainability Themes.
Bladex is a multinational bank originally established by the central banks of Latin America and the Caribbean countries, which began operations in 1979 with the purpose of promoting the financing of trade and economic integration in the region. Headquartered in Panama, Bladex also has offices in Argentina, Brazil, Colombia, Mexico, and an agency in the United States, to promote regional development and serve its client base, which includes financial institutions and corporations.