IDB Invest, a member of the IDB Group, provided Sudameris Bank S.A.E.C.A. a loan for up to 300,000 million guaranies, the equivalent of approximately $45 million, with a tenor of up to five years.
The first tranche of the deal was for 100,000 million guaranies, financed in local currency through the issuance of a new series of bonds in the local capital market under IDB Invest’s issuance program in Paraguay. The successful issuance confirms IDB Invest's access to capital markets, and the ongoing demand of local investors for high quality issuances, even in times of market stress. CADIEM acted as the intermediary brokerage house for the placement.
The deal will support medium and long-term financing in local currency for micro, small and medium-sized enterprises (MSME) in Paraguay, a key segment for the country's economy currently needing support. It will also serve to provide financial products according to their needs.
This operation can potentially contribute to two United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Reduced inequalities (SDG 10).
As part this deal, IDB Invest will advise Sudameris in identifying and monitoring a sustainable portfolio, with a positive social and environmental impact. Additionally, an action plan has been developed that will ensure Sudameris the continuity of its solid environmental and social practices.
As part of its institutional response and in order to mitigate the economic crisis generated by the COVID-19 pandemic, IDB Invest is prioritizing the MSMEs sector in the region, acting appropriately in the face of difficulties and allowing them access to financing through of financial institutions.
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.
Sudameris is currently the fastest growing bank in the Paraguayan financial system, with a loan portfolio of more than $1.3 billion, operating in Paraguay more than 60 years ago. Traditionally, it has focused on the corporate and large business segments, and a few years ago it set itself the goal of strengthening its competitive position and advancing the diversification of its businesses by developing the SME segment. Sudameris is a comprehensive commercial bank, which aims to provide products and services that contribute to the sustainable development of its more than 95,000 clients. It is also highlighted that Sudameris has been the first bank to venture into the first financial leasing company in Paraguay and has an insurance broker