IDB Invest has provided subordinate financing to Caja Municipal de Ahorro y Crédito Cusco S.A. (Caja Cusco). The 10-year deal is denominated in Peruvian soles (PEN) equivalent to $25 million. The financing will strengthen Caja Cusco's equity and support its portfolio growth strategy in a sustainable manner.

The transaction seeks to increase access to credit for Micro and Small Enterprises in urban and rural areas of Peru, especially in the areas of Cusco, Apurímac, Puno and Madre de Dios. At least 20% of the financing will be directed to Indigenous/Women-led MSEs, in order to improve access to financing for this subgroup of the Peruvian MSEs.

IDB Invest will advise Caja Cusco to define a scalability strategy for the agricultural MSE product, aimed at indigenous populations, due to the coverage of Caja Cusco in high Andean areas with a significant presence of traditional communities in need of better access to rural financing.

For this, IDB Invest will work with Caja Cusco in the assessment of its current internal capacities, through which market research will be carried out with current clients, lessons learned for the scalability of the product will be highlighted, and an action plan will be defined. Additionally, IDB Invest completed an analysis that details Caja Cusco's level of progress in various corporate governance attributes, and possible areas for improvement were identified, which have been welcomed by the entity.

This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): End Poverty (SDG 1), Decent work and economic growth (SDG 8) and Industry, innovation and infrastructure (SDG 9).

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 $13.1 billion in asset management and 385 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.

About Municipal Savings and Credit Fund Cusco

Caja Municipal de Ahorro y Crédito Cusco S.A. (Caja Cusco) began its operations on March 28, 1988. It is a public financial institution with legal status under private law, with economic, financial and administrative autonomy. Caja Cusco has 111 agencies in 14 regions of the country. Caja Cusco is the third bank by assets and the fourth by deposits in the segment of Municipal Savings and Loans. Caja Cusco launched the digital opening of savings accounts and increased the use of the electronic channel in order to reduce its operating cost. The Wayki application (Caja Cusco's mobile application) already has more than 220,000 users who conduct transactions from their cell phones.