IDB Invest and JICA announce financing to Mibanco to support MSMEs in Peru

IDB Invest and Japanese International Cooperation Agency (JICA) have signed a financing contract of up to US$100m with Mibanco, a Peruvian bank specialised in promoting and expanding access to financing for micro, small and medium enterprises (MSMEs) and women-led MSMEs in Peru. The financing consists of an up to US$50m senior loan from IDB Invest and an up to $50m parallel loan from JICA.

By providing financial resources to these companies, the project will help women entrepreneurs to expand their businesses, generate employment and contribute significantly to local economic development.

The financial structure offers Mibanco with longer-term financing than that available in the local market, strengthening its portfolio of women-led SMEs. Additionally, having a parallel lender helps to diversify Mibanco’s funding sources, strengthening its long-term financial position.

The financing will generate greater financial inclusion and boost sustainable economic growth. This effort will not only benefit individual businesses but will also contribute to strengthening the business community and increasing opportunities for women entrepreneurs in the economic sphere.

The financing will be complemented with technical advisory services to strengthen Mibanco’s value proposition for women-led MSMEs by delving deeper into their differentiated needs, identifying the structural barriers they face, and providing comprehensive financial and non-financial solutions to help their businesses grow.

About IDB Invest
IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of US$21bn in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About JICA
The Japanese International Cooperation Agency (JICA) is a government entity that manages the majority of the Official Assistance for Development (AOD) of the Japanese government. Its mission is to promote economic and social development in developing countries through technical, financial and voluntary cooperation projects. JICA works in areas such as education, health, infrastructure, agriculture and the environment, and collaborates with several international and local organisations to implement its programs. Furthermore, JICA focuses on creating inclusive and sustainable societies, supporting initiatives that improve the quality of life and foster resilience in the face of global challenges.

About Mibanco
Mibanco is the leading financial entity for microfinance in Latin America and the second most relevant player worldwide. In Peru, Mibanco has 27 years of experience working with the purpose of transforming people’s lives, committed to financial inclusion and progress. It has a portfolio of placements exceeding US$3,700m, around 2 million customers and more than 280 points of attention throughout Peru. Mibanco focuses on financial inclusion and support for the business growth of micro and small companies. With an expanded national presence and diverse value strategies, Mibanco has consolidated a significant share in the market, standing out for its commitment to the economic and social development of the country.

Source: IDB Invest