IDB Invest Boosts Financing for Small Businesses and the Forestry Sector in Paraguay in Partnership with Sudameris
ASUNCIÓN – IDB Invest is promoting access to credit for small and medium-sized enterprises (SMEs) in Paraguay to foster sustainable forestry development by leading a financing package for Sudameris.
The transaction aims to support long-term financing for small businesses and sustainable forestry projects in Paraguay. It also seeks to improve financial health and encourage responsible practices in key sectors for the country’s economic growth.
The financial structure consists of two loans:
- An IDB Invest loan of 600 billion guaraníes (approximately $86,000)
A dollar-denominated loan in which IDB Invest contributes $30 million, with the potential to mobilize approximately $80 million from institutional investors.
Paraguay faces a financing gap for micro, small, and medium-sized enterprises equivalent to 14% of its GDP. At the same time, the country has significant forestry wealth, with more than 14 million hectares of native forest. This operation takes place in the context of strengthening the financial system and promoting environmental sustainability, aligning with the National Forestry Policy and private sector efforts to adopt international standards such as FSC® certification.
Additionally, IDB Invest will provide technical advisory services to support Sudameris in strengthening its environmental and social management system, improving corporate governance, and designing a value proposition for women-led SMEs.
This operation reinforces IDB Invest’s commitment to sustainable development in Paraguay, promoting access to credit and strengthening strategic sectors for the country’s economic and environmental growth.
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 $22 billion in assets under management and more than 440 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. Visit our website: www.idbinvest.org/en.
About Sudameris Bank
Sudameris Bank, headquartered in Asunción, has established itself as the leading bank in providing loans to the country’s productive sector, ranking #1 in the Industries, Livestock, and Agriculture segments, with a strong commitment to supporting both Corporate and SME segments. It also stands out as a benchmark in structuring local syndicated loans, driving investment and expansion projects for major national industries. This capability reinforces its reputation as a solid, dynamic financial institution committed to Paraguay’s economic growth. Alongside its financial leadership, Sudameris Bank plays a pioneering role in reforestation and environmental sustainability initiatives, promoting projects that contribute to the preservation of natural resources, committing not only to economic development but also to building a greener, more sustainable Paraguay for future generations.