IDB Invest and BAC Credomatic El Salvador join forces to empower women-led small and medium-sized enterprises through Mujer Accelera
IDB Invest, a member of the IDB Group, provided a $60 million loan to Banco de América Central, S.A. (BAC Credomatic El Salvador). The 5-year tenor loan is aimed at financing women-led small and medium-sized enterprises (SME) through BAC Credomatic El Salvador’s Mujer Accelera program.
Mujer Acelera offers specialized financial products and solutions for women-led companies, as well as technical advice aimed at strengthening their business knowledge and skills.
The deal includes funds from the Initiative for the Women Entrepreneurs Finance Initiative (We-Fi), an alliance that aims to facilitate financing and access to markets for women-led companies.
With the support of We-Fi, IDB Invest will provide technical advice to BAC Credomatic El Salvador to strengthen the financial services and technical assistance of the program. Advisory services will be provided to BAC Credomatic El Salvador to identify the digital transformation needs of its women-led SME clients and support them in transforming their business model toward greater use of digital channels.
The financial structure of this transaction includes an innovative incentive mechanism designed to achieve results. Through We-Fi, IDB Invest will provide BAC Credomatic El Salvador a bonus for a total value of up to $450,000 over a period of five years for the achievement of results in the Mujer Accelera program. In this case, the incentive is linked to financing 1,550 small and medium-sized companies led by women, equivalent to expanding the portfolio of loans to women-led SME from the current 27 percent, to 45 percent in 2025. Additionally, the incentives will be disbursed annually after an evaluation of results.
This financing was approved under the IDB Invest Crisis Management Facility as part of the IDB Group's response to mitigate the effects of the crisis caused by COVID-19.
This operation potentially contributes to five United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10), Partnerships 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 $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About BAC El Salvador
BAC El Salvador is part of the BAC Credomatic Financial Group, a leader in Central America for its technological innovation and the most robust digital platform in the region. BAC El Salvador has a strong participation in the personal banking market and a significant presence in the corporate and business sectors. As of December 31, 2019, it had 2,300 employees, more than 50 service points, in addition to being the leader in the country in electronic payment methods. In 2007 BAC El Salvador acquired Propemi (Program for the Promotion of Small and Micro-enterprises) in El Salvador, which has allowed it to position itself as a benchmark in the country's SME segment. With the Woman Accelerate Program, created in 2007, it seeks to offer financial and non-financial solutions to SMEs led by women, to date, 864 loans have been granted for an estimated amount of $63 billion, which has been complemented with technical assistance, support and training, given through the Business Development Center where more than 500 businesswomen have been assisted.