IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, granted a loan of up to $15 million to Fedecrédito, the federation of credit unions and workers’ banks in El Salvador. The financing consists of a subscription of bonds, denominated in US dollars, for an amount of up to $15 million through the securitization program of future operating flows or diversified payment rights (DPR), related to bank transfers.
The use of the funds will be aimed at supporting financial inclusion in El Salvador in micro, small and medium enterprises (MSME), housing and productive sectors.
Fedecrédito, as part of a cooperative of financial intermediaries strategically committed to the financial sector and the financial inclusion of MSMEs and low-income families, will continue strengthening its strategy of diversifying its funding sources through the securitization of these flows.
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 $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
The Fedecrédito System (FDCS) is a cooperative of financial intermediaries strategically committed to the financial sector and the inclusion of micro, small and medium-sized enterprises (MSME) and low-income families. The FDCS is composed of 48 credit units, seven workers' banks, two insurance companies and Fedecrédito, a second-level regulated entity. The FDCS is represented by Fedecrédito in the search for the financing of its operations. Fedecrédito acts as a financial interface between the FDCS, national and international lenders and investors in the capital markets. The financing obtained by Fedecrédito (with the respective financial terms and conditions) is subsequently transmitted to the member entities.