IFC - International Finance Corporation
IFC - International Finance Corporation
11/24/2023 | Press release | Distributed by Public on 11/24/2023 07:52
IFC Invests in Banco Continental to Increase Lending to SMEs and Women-led SMEs in Paraguay
Asunción, Paraguay, November 24, 2023. The International Finance Corporation (IFC), a member of the World Bank Group, announced the signing of a loan to Banco Continental S.A.E.C.A., a leading commercial bank in Paraguay. The investment of US$112.5 million consists of (i) a senior "A" loan of US$50 million, (ii) a "B" loan of US$25 million, and (iii) a trust loan under IFC's Managed Co-Lending Portfolio Program (MCPP) of US$37.5 million.
The total support will increase access to finance for underserved market segments, such as small and medium enterprises (SMEs), with at least 25% of the proceeds destined to women-led SMEs (WSMEs).
"It is critical that underserved segments of the market and smaller businesses, specially those owned by women, are supported and have access to the funding they need to grow and expand their businesses", commented Manuela Adl, IFC's Senior Regional Manager, Southern Cone."Our partnership with Banco Continental will help the bank strengthen its business of serving smaller enterprises, ultimately contributing to economic growth and job creation in Paraguay. IFC will continue mobilizing resources and expanding market inclusiveness in Paraguay and across the region".
This is IFC's fifth investment in Banco Continental. IFC and Continental have worked together in Paraguay since 2008, when the bank joined IFC's Global Trade Finance Program.
"This transaction constitutes a tool of great importance for the financing of SMEs, taking into account their participation and impact on our economy, and considering that 95% of the companies in Paraguay and 70% of the jobs come from this sector" stated Rodrigo Ortiz Frutos, Banco Continental's Principal Director. "In line with our strategy, the inclusion of a line of credit for SMEs led by women represents a contribution to reducing gender gaps and access to better financing conditions."
SMEs play a central role in creating dynamic, competitive, and inclusive economies as important sources of net job growth in emerging markets. Paraguay's formal SME finance gap has reached US$3.9 billion, about 14% of GDP.
In addition, women are vastly underrepresented in SME ownership in Paraguay, accounting for only 18.9% of the total SMEs, with a WSMEs finance gap estimated at US$350 million. Improving access to finance and strengthening the competitiveness of both SMEs and WSMEs is crucial for the development of Paraguay. IFC's investment in Banco Continental will help close the financing gap in those sectors.
About IFC
IFC - 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 Banco Continental
The total support will increase access to finance for underserved market segments, such as small and medium enterprises (SMEs), with at least 25% of the proceeds destined to women-led SMEs (WSMEs).
"It is critical that underserved segments of the market and smaller businesses, specially those owned by women, are supported and have access to the funding they need to grow and expand their businesses", commented Manuela Adl, IFC's Senior Regional Manager, Southern Cone."Our partnership with Banco Continental will help the bank strengthen its business of serving smaller enterprises, ultimately contributing to economic growth and job creation in Paraguay. IFC will continue mobilizing resources and expanding market inclusiveness in Paraguay and across the region".
This is IFC's fifth investment in Banco Continental. IFC and Continental have worked together in Paraguay since 2008, when the bank joined IFC's Global Trade Finance Program.
"This transaction constitutes a tool of great importance for the financing of SMEs, taking into account their participation and impact on our economy, and considering that 95% of the companies in Paraguay and 70% of the jobs come from this sector" stated Rodrigo Ortiz Frutos, Banco Continental's Principal Director. "In line with our strategy, the inclusion of a line of credit for SMEs led by women represents a contribution to reducing gender gaps and access to better financing conditions."
SMEs play a central role in creating dynamic, competitive, and inclusive economies as important sources of net job growth in emerging markets. Paraguay's formal SME finance gap has reached US$3.9 billion, about 14% of GDP.
In addition, women are vastly underrepresented in SME ownership in Paraguay, accounting for only 18.9% of the total SMEs, with a WSMEs finance gap estimated at US$350 million. Improving access to finance and strengthening the competitiveness of both SMEs and WSMEs is crucial for the development of Paraguay. IFC's investment in Banco Continental will help close the financing gap in those sectors.
About IFC
IFC - 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 Banco Continental
Continental is a locally owned commercial bank based in Asunción that was established in 1980. It is the second-largest bank in Paraguay in terms of loans and assets. It offers financial products and services for companies and individuals. It employs almost 1,200 people with 60 branches nationwide. For more information, please visit: https://www.bancontinental.com.py