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Financing Access for BOP Shop Owners
The objective of the project is to expand access to finance for micro and small entrepreneurs (mom and pop shop owners) that belong to the base of the pyramid (BoP) in El Salvador, through the provision of productive and working capital financing,. In order to achieve this objective, OMJ will provide a Risk Sharing Facility of up to US$5 million to BA, the FI that will provide loans to these beneficiaries. A technical assistance proposal is being presented to GCM for funding consideration, that aims to improve their business management skills. The Guarantee will provide BA with credit-risk coverage for its downscaling efforts in the BoP segment. The guarantee will be structured as a Risk Sharing Facility (RSF) that will enable BA to introduce and provide new value-added products for BoP microentrepreneurs for: (i) the acquisition of equipment; (ii) physical infrastructure improvements; and (iii) working capital needs. The first loss of the pool of loans will be absorbed by BA, and the IDB and BA will share pari-passu the second loss position.

Project Detail

Country

El Salvador

Project Number

ES-L1069

Approval Date

July 3, 2013

Project Status

Implementation

Project Type

Guarantee

Sector

PRIVATE FIRMS AND SME DEVELOPMENT

Subsector

SMALL AND MEDIUM ENTERPRISE

Lending Instrument

BID Invest

Lending Instrument Code

IIC

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 10,000,000.00

Country Counterpart Financing

USD 5,000,000.00

Original Amount Approved

USD 5,000,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
2961/OC-ES Non-Sovereign Guaranteed USD - United States Dollar Ordinary Capital Guarantee Financial Instrument
Operation Number 2961/OC-ES
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Ordinary Capital
  • Financial Instrument: Guarantee Financial Instrument

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Implementation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1953259545-24766
Agreement - Financial Closing - SCF
Acceso a Financiamiento para Pequeños Comerciantes de la Base de la Pirámide [37802473].PDF
Jan. 21, 2015
Spanish
https://www.iadb.org/document.cfm?id=EZSHARE-1953259545-24768
Agreement - Financial Closing - SCF
Financial Acces for BOP Shop Owners [37802073].PDF
Jan. 21, 2015
English
Preparation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-1953259545-24767
Environmental and Social Management Reports
Banco Agricola SME Financing Partnership (ES-L1084) - ESMR [37805717].PDF
May. 31, 2013
English
https://www.iadb.org/document.cfm?id=EZSHARE-1953259545-18495
Project Abstract
ES-L1069 - SÍNTESIS DEL PROYECTO [37829256].PDF
Jun. 24, 2013
Spanish
https://www.iadb.org/document.cfm?id=EZSHARE-1953259545-18496
Environmental and Social Strategies
ES-L1069 ESTRATEGIA AMBIENTAL Y SOCIAL (2) [37829401].PDF
Jun. 24, 2013
Spanish

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