IFC signs investment in Chile's Consorcio Financiero

The International Finance Corporation (IFC) and IFC FIG Fund – both members of the World Bank group – have signed a combined investment of US$140mn in Chilean insurance and banking group Consorcio Financiero, with US$100mn to be provided by the IFC and US$40mn by the FIG fund.

The new investment comes just over a year after the IFC provided US$60mn to Banco Consorcio to enhance the bank's lending program for renewable energy projects in Chile.

The equity capital injection will be used to fund the expansion of Consorcio Financiero's banking operations in the region, as well as to boost the company's insurance sector.

In a press release the IFC said that although demand for insurance is growing in Chile, there is still room to increase the reach of insurance coverage, which is seen as essential for the deepening of capital markets and deployment of long-term funds in the economy.

In the past five years, the IFC has invested US$656mn in the Latin American insurance sector, of which 30% relates to equity investments in pension providers, 28% in health insurers and 17% in life insurers.

(Pictured: Consorcio Financiero's HQ in Santiago)