The IFC has acquired an equity stake in Factorline, a factoring and lending company in Chile. It is investing up to US$15mn for an 18% stake in Factorline, raising the company’s capital base to about US$46mn.

Factorline targets its products at smaller businesses whose needs are not usually met by the traditional banking sector. IFC’s investment will help expand Factorline’s lending capacity, and help more Chilean SMEs develop the trade and export side to their business.

IFC previously invested in Factorline in 2005, providing a US$5mn senior long-term loan. Over the last five years, IFC has committed a total of US$410mn to various projects in Chile, mainly involving infrastructure and education projects.

Remarking IFC’s activities in Chile, Yolande Duhem, IFC country manager for Chile says: “This transaction is consistent with IFC’s strategy to focus on high-impact areas, including support for SMEs, low-income housing, education, sustainable finance, and infrastructure. We are helping Chile’s private sector respond to a changing global economic environment, particularly in the government’s priority areas of growth and equal opportunity.”