INCOFIN SME Financing Agreement

1. Project Description. Incofin’s main business is factoring, effected through various instruments such as invoices, checks, promissory notes, letters, and other instruments. The company entered the financial leasing business in mid-2012 through its subsidiary Incofin Leasing.

2. Environmental and Social Categorization and Rationale. This operation is classified as a Category FI-3 operation given that the use of funds from this Loan presents a low risk.

3. Environmental and Social Risks and Impacts. Incofin’s financing operations are short-term; thus, the company seeks to require compliance with local and international environmental and social (“E&S”) regulations and standards ratified by the Chilean government. The company works with about 1,100 factoring clients and 400 financial leasing clients.

4. Mitigation Measures/E&S Action Plan. Incofin implemented an Environmental and Social Management System that seeks to reduce the credit risk of its loan portfolio by evaluating its clients’ level of social-environmental risk, applying IIC exclusion list, and also excluding clients that fail to comply with environmental and labor legislation, as well as those that present a high environmental and social risk.

For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email requestinformation@idbinvest.org. 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(202) 623-3952.