MICROCAPITAL BRIEF: MSME Clients of Sudameris Bank to Benefit from $15m Bond Issued by IDB Invest in Paraguay

IDB Invest, a member of the Inter-American Development Bank (IDB) Group, recently arranged a bond in the amount of PYG 100 billion (USD 15 million) to fund “medium- and long-term” lending in local currency by Paraguay’s Banco Sudameris to micro-, small and medium-sized enterprises. The bond is priced at 7.9 percent and was intermediated by Cadiem, a Paraguay-based firm providing investment advice, business valuation and financial planning services. Sudameris is a commercial bank whose mission is to promote “sustainable development.” As of 2022, it has total assets of USD 2.3 billion and serves approximately 110,000 clients via 22 branches and online. Its services range from savings and loans to insurance, payment cards, investments, currency exchange, payments, cash transportation and trade finance.

The goal of US-based IDB Invest is to “finance projects to advance clean energy, modernize agriculture, strengthen transportation systems and expand access to financing” in Latin America and the Caribbean. The institution is owned by its 47 member countries. As of 2022, IDB Invest manages assets valued at USD 15 billion.

Headquartered in the US city of Washington, IDB Group is a multilateral institution working to promote “environmentally friendly” economic development via improved health, education and infrastructure in Latin America and the Caribbean. It has 48 member countries, of which 26 are part of the region. As of 2021, the group’s assets totaled USD 152 billion.

By Hasnat Aslam, Research Associate

Sources and Additional Resources

IDB Invest press release
https://www.idbinvest.org/en/news-media/idb-invest-issues-its-fourth-domestic-bond-paraguay-support-small-and-medium-businesses

Sudameris
https://www.sudameris.com.py

IDB Invest homepage
https://www.idbinvest.org

IDB homepage
https://iadb.org

Cadiem homepage
https://www.cadiem.com.py

Previous MicroCapital story on IDB Invest
https://www.microcapital.org/microcapital-brief-banco-compartamos-borrows-50m-from-idb-invest-to-on-lend-to-micro-small-enterprises-in-mexico-focusing-on-female-run-enterprises/

Previous MicroCapital story on IDB Group
microcapital.org/microcapital-brief-government-of-belize-icdf-idb-seek-to-create-employment-aid-pandemic-recovery-among-msmes-especially-women-led-firms/

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