|
 Santiago, Chile, May 6, 2024. The International Finance Corporation (IFC), a member of the World Bank Group (WBG), announced the signing of a senior loan of US$10 million to Fondo Esperanza to increase its lending portfolio to women-owned micro-enterprises (WME), with a portion specifically targeted to WMEs owned by low-income migrants and refugees in Chile. This loan follows a US$10 million (equivalent in CLP) commercial paper issued by Fondo Esperanza in the local capital market in 2020, which represented Chile's first-ever Social Commercial Paper and the fourth social instrument issued in the Country. A substantial portion of entrepreneurs served by Fondo Esperanza operate in the informal sector, limiting their access to traditional banking services. Consequently, many resort to loans from informal lenders who impose unfavorable credit conditions, including higher interest rates. Therefore, through an integral microfinance service, Fondo Esperanza promotes entrepreneurship among Chile's vulnerable population. "We are pleased to partner with Fondo Esperanza to promote socioeconomic inclusion for underserved populations in Chile," commented Manuela Adl, IFC's Senior Regional Manager, Southern Cone. "Investing in microentrepreneurs is not just about empowering individuals; it's about fueling the engine of innovation, resilience, and economic growth. Through this investment, IFC aims to be a catalyst for community empowerment and sustainable development." "Alliances like this provide us with opportunities to extend our support to entrepreneurs across Chile, with a focus on reaching out to marginalized communities, including migrant women. With this funding, we can further empower them to expand their businesses and enhance their quality of life. We are committed to ensure that the benefits of these investments resonate throughout every segment of our society," said Catalina Valenzuela, Administration and Finance Manager, Fondo Esperanza. Approximately 49% of Fondo Esperanza's clients live below the poverty line, and 70% of them are located outside of Santiago, where a significant portion of Chile's GDP is concentrated. Fondo Esperanza primarily focuses on empowering women in vulnerable positions, with 79% of its loan portfolio allocated to women. Among these, 45% are considered heads of their families or economically responsible. About IFCIFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, the IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org. Stay Connected with IFC on social media. About Fondo EsperanzaFondo Esperanza stands as Chile's largest social financing institution, spearheading inclusive microfinance initiatives tailored to empower entrepreneurs in vulnerable sectors. Over its 21-year journey, it has supported over 620,000 microenterprises, offering microcredit, training, fostering support networks, and advancing digital inclusion. Through the Community Banking methodology, it presently aids 130,000 entrepreneurs spanning from Arica to Coyhaique, with a credit portfolio exceeding US$72 million. Fondo Esperanza operates under the auspices of the BBVA Microfinance Foundation and the Hogar de Cristo Foundation. For more information, visit www.fondoesperanza.cl.
|
