The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will provide US$50mn to Fundacin Social in Colombia to help expand its operations providing access to credit for small companies.
This transaction will continue to strengthen the partnership between IFC and Fundacin Social, entities that share a strategic interest in furthering Colombia’s economic development, in particular that of the lower-income population and small entrepreneurs.
IFC’s operation will allow Fundacin Social to grow its microfinance portfolio to more than US$37mn and reach over 53,000 clients over the next five years.
IFC’s financing, part of which has the option to convert into equity of different companies of Fundacin Social, aims to leverage the foundation’s expansion strategy for its business organisation. This operation follows IFC’s equity participation in BCSC, the largest company of the Fundacin Social Group.
Roberto Albisetti, IFC’s country manager for Colombia, says, “For IFC, the ongoing support to Fundacin Social reflects our strategy in Colombia of facilitating access to finance for medium and low-income segments of society. The development of the country’s small and medium enterprises is crucial for generating jobs, creating opportunities, and improving the people’s quality of life.”
“The strengthening of the relationship with IFC is a very important step for the Fundacin. We have worked for over a century on a business model for overcoming the structural causes of poverty in Colombia. This mission relates to the objectives of IFC and its development strategy,” points out Alvaro Dvila Ladrn de Guevara, president of Fundacin Social.