| Project description |
| The project will consist of a Credit Facility of up to US$8 million for Sociedad de Ahorro y Credito Apoyo Integral (“Integral” or the “Company”). The credit line is intended to diversify the Company’s funding base and provide medium-term funding for on lending to small and micro enterprises. |
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| Project sponsor and major shareholders of project company |
Apoyo Integral is one of the leading microfinance institutions in El Salvador. As of March 2009, the Company had a credit portfolio of $55 million with 35,131 credits and total equity of $10.2 million.
Primary shareholders of Integral are: Apoyo Integral Inversiones, Fundacion Duenas Herrera, FUSAI, Accion International and Grupo ACP. |
| Total project cost and amount and nature of IFC's investment |
| The proposed project consists of an $8 million loan for IFC’s own account to support the Company’s loan portfolio growth. Up to $1 million would be convertible into shares. |
| Location of project and description of site |
| With a network of 25 branches distributed though the Salvadorian territory, Integral has a significant presence all over the country covering the urban, rural and semi rural areas. |
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| Anticipated development impact of the project |
The expected development impacts of the project will be:
• Integral’s loan portfolio growth and the number of active clients in the target sector;
• Integral’s size of loans in rural areas; and
• Integral’s portfolio performance. |
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| IFC's expected development contribution |
| IFC’s funds will support the institution’s growth in the microfinance market. IFC’s investment would thus help Integral, an institution that has a large proportion of micro and small enterprises clientele, to further expand its financial services to the lower end of the population, particularly in rural areas, which are significantly underserved. In doing so, IFC’s partnership with Apoyo Integral will help reduce the gap in the supply of financial services and the demand for them in El Salvador. |
| Environmental and social issues - Category FI |
This project involves IFC support for the business of microfinance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature of activities supported, the project will be required to:
- Develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the Microfinance exclusion list
- Identify qualified persons to manage and implement the procedure
- Commit to establish a similar screening process to avoid supporting activities on the -IFC Microfinance Exclusion List in MFIs in which it will take a controlling stake
- Demonstrate commitment and resources to implementing the procedure
- Submit a periodic report to IFC as per a format to be provided by IFC
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| For inquiries about the project, contact: |
Luis Castillo, President
Agencia Flor Blanca, Alameda Roosevelt y 47a. Avenida Sur.Colonia
San Salvador
Telephone: +22506000
Fax: +22506019 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
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