BCSC seeks up to US$5mn in funds from IFC for student loan program

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Thursday, March 31, 2011

Colombia's Banco Caja Social Colmena (BCSC) is seeking up to US$5mn in funding from the World Bank's private sector arm, IFC, aimed at providing financing to students in the low and middle-income segments.

The proposed project - expected to cost US$12.3mn - entails "the structuring of a mechanism by which low-to-middle income students could access medium and long-term financing to pay for their university tuition," the investment proposal on IFC's website reads.

IFC would partner with BCSC - the 12th largest Colombian banks in term of total assets - and financial services firm Covinoc, in which the IFC has a 12.98% stake.

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IFC expects that the proposed facility "will deepen the financial market by introducing an affordable and commercially viable student loan scheme, thereby demonstrating the profitability of this market segment," the proposal reads.

IFC's board will consider the investment proposal on May 2.