Santiago, Chile, October 3, 2023.- The International Financial Corporation (IFC), a member of the World Bank Group, has approved a loan of up to US$ 60 million for Caja de Compensación de Asignación Familiar Los Héroes ( Caja Los Héroes), spanning a five-year term. This loan aims to strengthen the institution's financial inclusion program, with a specific emphasis on supporting low-income women in Chile. IFC's financing will take place in two tranches: an initial commitment of US$30 million will be made at this stage, while the remaining balance may be committed in the forthcoming months in collaboration with a syndication of external investors.
This new financing seeks to further boost the growth and expansion of Caja Los Héroes' social credit framework, which serves as a valuable avenue for fostering financial inclusion. It is worth noting that this operation constitutes IFC's second investment with Caja Los Héroes, following an initial loan extended in 2018, which marked the first international financing granted to a Caja de Compensación in Chile.
This partnership between both entities "stems from the substantial alignment between IFC's vision to promote sustainable and inclusive economic growth in Chile and Caja Los Héroes' social mission, particularly with regard to financial inclusion in the country," said Manuela Adl, IFC Senior Regional Manager for the Southern Cone. "Moreover, we are pleased to invite foreign investors to participate in what would be the first international movilization loan for a Caja de Compensación, and we hope that it paves the way for future opportunities."
In this regard, the General Manager of Caja de Compensación Los Héroes, Alejandro Muñoz, said that "this operation signifies an expression of confidence from an international organization towards Caja Los Héroes, recognizing the pivotal social role played by the Cajas de Compensación. This development will enable us to deepen the origination of social credit to the segment of low-income women, who may benefit the most from this type of social support."
It should be noted that this operation is part of Los Héroes' financing source diversification strategy, which has recently been highlighted by the risk rating agency ICR.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
This new financing seeks to further boost the growth and expansion of Caja Los Héroes' social credit framework, which serves as a valuable avenue for fostering financial inclusion. It is worth noting that this operation constitutes IFC's second investment with Caja Los Héroes, following an initial loan extended in 2018, which marked the first international financing granted to a Caja de Compensación in Chile.
This partnership between both entities "stems from the substantial alignment between IFC's vision to promote sustainable and inclusive economic growth in Chile and Caja Los Héroes' social mission, particularly with regard to financial inclusion in the country," said Manuela Adl, IFC Senior Regional Manager for the Southern Cone. "Moreover, we are pleased to invite foreign investors to participate in what would be the first international movilization loan for a Caja de Compensación, and we hope that it paves the way for future opportunities."
In this regard, the General Manager of Caja de Compensación Los Héroes, Alejandro Muñoz, said that "this operation signifies an expression of confidence from an international organization towards Caja Los Héroes, recognizing the pivotal social role played by the Cajas de Compensación. This development will enable us to deepen the origination of social credit to the segment of low-income women, who may benefit the most from this type of social support."
It should be noted that this operation is part of Los Héroes' financing source diversification strategy, which has recently been highlighted by the risk rating agency ICR.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About Caja Los Héroes
Caja de Compensación de Asignación Familiar Los Héroes (Caja Los Héroes) is the third largest fund in Chile, with more than one million members. It has a main focus on low-income workers through affiliated companies in the SME segment. It is also the first to serve pensioners, with 45 per cent of the total affiliates in this segment. Through its network of more than 160 branches, Caja Los Héroes reaches all regions of the country. It is currently the largest social benefit payment organization, with more than 20 million transactions per year thanks to its contract with the Institute of Social Security (ISP) to pay State benefits. For more information, visit www.losheroes.cl.
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