Press Release: IFC Grants Loan to Caja Los Héroes to Promote Financial Inclusion in Chile
The International Financial Corporation (IFC), a member of the World Bank Group, has approved a loan of up to US$ 60 million for Caja de Compensación de Asignación Familiar Los Héroes ( Caja Los Héroes), spanning a five-year term. This loan aims to strengthen the institution’s financial inclusion program, with a specific emphasis on supporting low-income women in Chile. IFC’s financing will take place in two tranches: an initial commitment of US$30 million will be made at this stage, while the remaining balance may be committed in the forthcoming months in collaboration with a syndication of external investors.
This new financing seeks to further boost the growth and expansion of Caja Los Héroes’ social credit framework, which serves as a valuable avenue for fostering financial inclusion. It is worth noting that this operation constitutes IFC’s second investment with Caja Los Héroes, following an initial loan extended in 2018, which marked the first international financing granted to a Caja de Compensación in Chile.
This partnership between both entities “stems from the substantial alignment between IFC’s vision to promote sustainable and inclusive economic growth in Chile and Caja Los Héroes’ social mission, particularly with regard to financial inclusion in the country,” said Manuela Adl, IFC Senior Regional Manager for the Southern Cone. “Moreover, we are pleased to invite mainly foreign investors to participate in what would be the first international syndicated loan for a Caja de Compensación and hope that it paves the way for future syndication opportunities.”
In this regard, the General Manager of Caja de Compensación Los Héroes, Alejandro Muñoz, said that “this operation signifies an expression of confidence from an international organization towards Caja Los Héroes, recognizing the pivotal social role played by the Cajas de Compensación. This development will enable us to deepen the origination of social credit to the segment of low-income women, who may benefit the most from this type of social support.”
It should be noted that this operation is part of Los Héroes’ financing source diversification strategy, which has recently been highlighted by the risk rating agency ICR.
Photo courtesy of Juan Manuel Núñez Méndez.