The financing consists of: (i) an A loan from the Inter-American Development Bank (IDB) for the COP equivalent of up to US$10 million; and (ii) a B loan from the IDB in the COP equivalent of approximately US$20 million. A term of up to five years is expected for the A loan, with no grace period. The term of the B loan(s) will be defined based on market conditions. With financing, Finanzauto S.A. will be able to offer loans to micro-, small-, and medium-sized enterprises (MSMEs) in Colombia’s transportation sector and various economic sectors that purchase vehicles as part of their productive assets for the development of their economic activity.
Finanzauto is an unregulated Colombian financial institution with more than 40 years in the market that focuses on passenger and commercial vehicle financing. It has 33,000 clients and conducts 15,000 transactions per year. It is the main unregulated vehicle financing institution in the country. Finanzauto has 150 points of service in the country in six cities and has formed partnerships with close to 240 car dealers through which it provides financing. As of June 2017, it had 380 employees. As of the same date, it had equity of US$119 million and assets of US$280 million.