MICROCAPITAL BRIEF: IDB Invests $60m in Colombia for MSMEs to Boost Production Capacity, Energy Efficiency

Bancoldex, an institution of the Colombian government “focused on promoting business growth and foreign trade,” recently received approval to access USD 60 million of a potential credit line of USD 600 million from the Inter-American Development Bank (IDB), a US-based multilateral institution, for on-lending to retail lenders serving micro-, small and medium-sized enterprises. In particular, the funding will be directed to efforts to improve production capacity and energy efficiency. Bancoldex also will seek to support investments in women-owned businesses. IDB’s initial outlay of USD 60 million will be matched at a rate of 50 percent by Bancoldex. The floating-rate loan is to be repaid over 25 years, with a grace period of 65 months.

Bancoldex reports total assets of COP 8.4 trillion (USD 2.5 billion) as of December 2018.

IDB was established in 1958 and is focused on promoting economic development in Latin America and the Caribbean. During 2018, IDB issued USD 14.2 billion in loans and guarantees, reaching USD 93 billion in total loans outstanding and generating USD 752 million in operating income.

Sources and Additional Resources

IDB press release
https://www.iadb.org/en/news/colombia-will-promote-productivity-companies-idb-support

Bancoldex homepage
https://www.bancoldex.com

Bancoldex financials
https://www.bancoldex.com/information-interest-shareholder-and-mrestors/annual-report-919

IDB homepage
https://www.iadb.org

Additional MicroCapital coverage of IDB
https://www.microcapital.org/?s=IDB

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