The World Bank Group’s International Finance Corporation (IFC) recently loaned Banco Davivienda of Colombia USD 335 million to increase its “financing of women-owned small and medium-sized enterprises (SMEs), social housing and sustainable construction projects”.
The President of Davivienda, Efraín Forero, said, “This operation is part of our sustainability strategy of supporting female entrepreneurship, financing sustainable projects and contributing with Colombians to fulfill their dream of having their own home. With the support of IFC we are reaching underserved segments, sectors and regions in Colombia. Additionally, this credit allows us to diversify our funding sources and is our first debt instrument under Basel III standards, which allows us to strengthen our capital indicators.”
Established in 1972, Davivienda had total assets of COP 110 billion (USD 34 billion), a gross loan portfolio of COP 84 billion (USD 26 billion) and deposits of COP 68 billion (USD 21 million) as of 2018. Davivienda serves 11.5 million customers via 685 branches in Colombia.
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, IFC reports total assets of USD 94.3 billion.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2019, it has 189 member nations. The group encompasses: (1) IFC; (2) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2018, the World Bank Group committed funding totaling USD 66.9 billion to its partner countries.
Sources and Additional Resources
IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/A78C32EE03D0D30D852584E9004E980C?OpenDocument
Davivienda homepage
https://www.davivienda.com/
IFC homepage
https://www.ifc.org/
World Bank homepage
https://www.worldbank.org/
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