IDB Invest Supports Micro, Small Businesses in Bolivia through Banco FIE
IDB Invest is providing $35 million in financing to Banco para el Fomento a Iniciativas Económicas S.A. (Banco FIE S.A.), in order to promote the segment of Bolivian micro and small enterprises in the trade, industry and services sectors, including enterprises led by women or owned by women.
The deal consists of $20 million committed tranche and an uncommitted tranche of $15 million, each with a term of four years.
The micro-and-small-enterprises segment in Bolivia presents financing gaps, especially in rural areas. By increasing access to credit through Banco FIE S.A., these small production units have the potential to generate a significant impact on the development and reactivation of local communities and the wider post-pandemic Bolivian economy.
IDB Invest will accompany and advise Banco FIE S.A. in the development and implementation of an environmental and social management system that allows strengthening the ability to identify and manage environmental and social risks associated with its credit operations.
This deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Zero Hunger (SDG 2), Gender Equality (SDG 5), Industry, Innovation and Infrastructure (SDG 9), Reduced inequalities (SDG 10) and Responsible production and consumption (SDG 12).
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 FIE S.A.
Banco FIE S.A. had its origin in the Center for the Promotion of Economic Initiatives (ONG FIE), a non-profit Bolivian civil association; after 13 years of work in the field of microfinance, on August 1, 1997, he incorporated a corporation under the name of Private Financial Fund for the Promotion of Economic Initiatives S.A. (FFP FIE S.A.) which became Banco FIE S.A. on March 17, 2010. Banco FIE is a financial entity with 36 years of experience that works true to the mission with which it was born, promoting the financial and social inclusion of the Bolivian population, primarily serving the micro and small business sector and the agricultural sector, and supporting with particular emphasis the economic empowerment of women. Today, Banco FIE has established itself as a benchmark for inclusive banking committed to the development of Bolivia, and as an entity that works firmly for gender equality.