Company name

AVLA Seguros de Crédito y Garantía S.A.

Project number

12872-01

FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.

E&S category
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FI-2

Country

Chile

Sector

Financial Institutions

Status

In implementation

Disclosed date

11/13/2020

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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02/26/2021

Approval date

03/03/2021

Signed date

07/29/2021

Sponsoring entity

N/A

Team leader

Almeida Pamponet Moura, Andre

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 40,000,000

Currency

USD

Project scope and objective

The proposed project includes a financing mechanism that will consist on a senior, secured, revolving warehouse facility of up to US$40 million, whose proceeds will be used to purchase and accumulate eligible endorsable mortgage loans or other similar instruments to small and mid-sized companies in Chile for a future asset backed securitization. The transaction will support and improve SMEs access to financing in Chile, narrowing the current financing gap that is increasing due to the COVID-19 crisis, and will help further expand debt capital markets in the country through new issuances of asset backed securities. The proceeds from the line will allow AVLA Group to expand its SMEs’ credit insurance business segment. The warehousing facility may support several accumulation periods, for a maximum of six years.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

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Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Luis Bryce

POSITION

Global Head of Capital Markets

PHONE NUMBER

+56-2-2706-8900

EMAIL

lbryce@avla.com

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices