IDB Invest provides loan to Mundo Mujer, the largest private microfinance bank in Colombia

Friday, January 11, 2019

Press release from IDB Invest

10 January 209

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IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, has provided a loan in Colombian pesos for $20 million to Banco Mundo Mujer, the leading private microfinance bank in Colombia. The funds will be used to finance micro and small entrepreneurs.

The financing allows Banco Mundo Mujer to increase its loan portfolio to support communities with easy and quick access to working capital, strengthening its businesses and productive units. In this way the deal seeks to generate financial inclusion by offering credit products adjusted to the needs and payment capacity of Colombians.

Colombia has around 2.5 million micro, small and medium enterprises. Microcredit remains one of the most important channels of banking. During 2017, the most significant entryway to the financial system for adults included savings accounts and microcredit.

About IDB Invest

IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of US$11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.

About Banco Mundo Mujer

Banco Mundo Mujer (BMM) started banking operations in February 2015, after 30 years of experience in microfinance as an NGO. Since its inception as a bank, it has registered indicators and figures that show its growth and positioning in the financial sector. As of September 30, 2018*, BMM grew its portfolio by 8.4 percent compared to the growth of the banking system, which was 4.4 percent, achieving a total portfolio of over 1.6 billion pesos and also achieving a past due loan ratio of 3.95 percent compared to 4.89 percent of the banking sector. At present, Banco Mundo Mujer has 688,666 total clients, 171 offices in 24 departments of the country serving 665 municipalities and supporting more Colombians every day. (*Financial Superintendence of Colombia).