Company name
Fedecredito Remittance Funding Company
Project number
14639-01
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
FI-2
Country
El Salvador
Sector
Financial Institutions
Status
In implementation
Disclosed date
10/13/2023
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/05/2023
Approval date
12/05/2023
Signed date
12/21/2023
Sponsoring entity
Federación de Cajas de Crédito y de Bancos de los Trabajadores, SC de RL de CV (“Fedecrédito” or “FDC”)
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 20,000,000
Currency
USD
Project scope and objective
The project consists of the issuance by Fedecredito (the “Sponsor”) of its first Social Bond with a Gender Lens under its Remittance Securitization Program (“RSP” or the “Program”). The total amount of the Bond is up to US$85 million with a seven-year term. IDB Invest’s subscription will be of up to US$25 million. Other potential investors will participate with up to US$60 million. Under the Program, Fedecrédito (the “Sponsor”) has sold all its rights over its existing and future US-denominated Remittance Rights (“RR”) to Fedecredito Remittance Funding Company, the Special Purpose Vehicle (“SPV”). The SPV issues notes whose repayment of principal and interest is backed by these RR. The payment of the RR from the SPV to Fedecredito is done with the proceeds of the notes issued. This is IDB Invest’s second transaction with Fedecredito’s RSP.
The proceeds of the Bond will be aimed at expanding the financing offered by Fedecredito’s Member Entities (“ME”) to Micro, Small and Medium-sized enterprises (“MSMEs”) and Women-led MSME (“WMSME”).
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
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. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
FEDECREDITO (DPR 2023) WOMEN ENTREPRENEURS EMPOWERMENT BOND 14639-01– ENVIRONMENTAL AND SOCIAL REVIEW ESRS
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