IDB Invest Supports Women Microentrepreneurs in Chile with a $10 Million Loan to Fondo Esperanza
- Fondo Esperanza is a leading social development institution in microfinance in Chile delivering microcredits focused on vulnerable sectors of the population, especially women.
IDB Invest provides a $10 million senior loan with a 3-year tenor to Fondo Esperanza to support an increase in financing for Chilean women microentrepreneurs in vulnerable and migrant sectors.
The financial resources will be accompanied by a technical assistance package that will support Fondo Esperanza in scaling up the demand for financing to migrants in Chile and developing a strategy aimed at this segment.
The technical assistance package will also include the definition of a value proposition and the design of non-financial services aimed at strengthening support for migrants. These initiatives are expected to contribute to the development of Fondo Esperanza's credit portfolio for migrants.
Around 92% of Fondo Esperanza's new partners fall are under the vulnerability line, according to criteria used by MIDE of Fundación Microfinanzas BBVA. This deal reinforces IDB Invest's commitment to support microenterprises in Chile, with a focus on gender, migrants and vulnerable populations.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): End of Poverty (SDG 1), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Reduced Inequalities (SDG 10).
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 $15.3 billion in asset management and 375 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 Fondo Esperanza
Fondo Esperanza is the largest social development organization in Chile, pioneering the implementation of a comprehensive microfinance service: microcredit, training, generation of support networks and digital inclusion; focused on entrepreneurship in vulnerable sectors. In its 20 years, it has supported more than 560,000 micro-enterprises, 80% of which are led by women. Fondo Esperanza is an institution that is part of Hogar de Cristo and, together with four other Latin American entities, the Microfinazas BBVA Foundation, is recognized as the social initiative with the greatest impact in Latin America. Through the world-renowned Community Banking methodology, today it serves 120,000 female entrepreneurs in Arica Chiloé. It inspires growth with the aim of transforming the living conditions of vulnerable people, their families and communities, expanding their opportunities and the sustainable development of their ventures.