CO-L1089 : Promigas: Brilla Non-banking Financing Program

The objective of the project is to scale the ¿Brilla¿ non-banking access to finance program in Colombia and support its possible replication in Peru. ¿Brilla¿ was developed by Promigas S.A E.S.P, a gas distribution company operating in the Caribbean and Valle del Cauca regions, which leverages its utilities platform to provide financing to previously unbanked Base of the Pyramid (BOP)[1] individuals. ¿Brilla¿ is similar in nature to the Financiación Social Program from EPM (Empresas Públicas de Medellín) (CO-L1080)[2], in that the credit methodology is based on the history of the gas connection payment records of its customers in order to offer its client base access to credit lines to purchase specific products that improve their quality of life, including materials for home improvements, energy-efficient appliances, IT products, and education In order to replicate and scale this successful model, the IDB is proposing to provide a senior A loan of up to $20 million and a B-Loan of around $30 million to Promigas S.A E.S.P allowing the company not only to scale Brilla, but also to offer new products and services under the program, such as microinsurance, and student loans.