Project detail - FEDECREDITO SC DE RL DE CV

FEDECREDITO SC DE RL DE CV

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Who is our client

Fedecredito is a federation of 55 member cooperatives, which provides technical assistance and funding to its members. The 55 member cooperatives together own 100 percent of Fedecredito. The cooperatives in turn are owned by their 934k members/ shareholders.

Funding objective

FMOs loan will be on-lent by Fedecredito to its members.

Why we fund this project

We have committed to: - reduce inequality in El Salvador (wealth gap). Fedecredito’s UBOs are about 1 million low-to-mid income Salvadorans and by providing debt we support further increase of Fedecredito’s equity value which is ultimately owned by this 1/6 of the population in El Salvador. - support financial inclusion in El Salvador. By supporting Fedecredito who leads and manages the growth of the network Fedecredito (Sistema Fedecredito) which has 625+ service points throughout El Salvador being most outreaching and largest banking network in the country. There is no place in El Salvador where within a 20 kilometer range you are not able to find a service point of Sistema Fedecredito. - mobilize/catalyze global partnerships. We have brought new investors to Fedecredito: DEG, Proparco, Ecobusiness Fund, Triodos and Actiam. - make Fedecredito Green. By supporting Fedecredito in boosting Sistema Fedecredito’s agricultural portfolio aligned with the biodiversity goals of EcoBusiness Fund.

Website client
http://www.fedecredito.com.sv
Region
Latin America & The Caribbean
Country
El Salvador
Sector
Financial Institutions
Signing date
12/8/2016
Total FMO financing
USD 24.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C