IDB Invest, the private-investment member of the US-based Inter-American Development Bank (IDB) Group, recently announced a local-currency loan totaling the equivalent of USD 50 million to Banco Compartamos, one of the seven units of Mexico-based Gentera. Compartamos provides loans, insurance and savings services to individuals as well as micro-, small and medium-sized enterprises (MSMEs) in Mexico. The loan is intended to help Compartamos “increase financing for micro- and small companies, and companies led by women in Mexico.” Compartamos was founded in 1990 as Gentera and subsequently established as a distinct entity in 2006. As of December 2021, Compartamos held MXN 32 billion (USD 1.6 billion) in assets. The majority of the bank’s clients are women.
In addition to Compartamos, Gentera’s members are ConCrédito, which provides personal loans in Mexico; Compartamos Financiera, which provides financial services in Peru; Interna, an insurance agency serving Mexico and Peru; Yastás, which enables agency banking; Fiinlab, an investor of venture capital; and Fundación Compartamos, which contributes to social development in Mexico. As of December 2022, Gentera held assets totaling MXN 70 billion (USD 3.5 billion).
The goal of IDB Invest is to “finance projects to advance clean energy, modernize agriculture, strengthen transportation systems and expand access to financing” in Latin America and the Caribbean. The institution is owned by its 47 member countries. As of 2022, IDB Invest manages assets valued at USD 15 billion.
Established in 1959, IDB Group is a multilateral institution working to promote “environmentally friendly” economic development via improved health, education and infrastructure in Latin America and the Caribbean. During 2020, it reports having issued USD 14 billion in loans and grants, ending the year with assets of USD 152 billion.
By Ben Greissman, Research Associate
Sources and Additional Resources
IDB Invest press release
https://www.idbinvest.org/en/news-media/idb-invest-supports-micro-and-small-companies-mexico-through-compartamos
Compartamos homepage
https://www.compartamos.com.mx
Compartamos financial statements
https://www.compartamos.com.mx/compartamos/informacion-financiera
Gentera background
https://www.gentera.com.mx/gentera/quienes-somos/nuestra-trayectoria
Gentera financial statements
https://www.gentera.com.mx/gentera/relacion-con-inversionistas/informacion-anual
IDB Invest background
https://idbinvest.org/en/about-us
IDB Invest financial statements
https://idbinvest.org/en/publications/2021-annual-report#
Previous MicroCapital article on IDB
https://www.microcapital.org/microcapital-brief-bncr-raising-75m-from-idb-invest-findev-canada-via-social-bond-issue-focusing-on-women-entrepreneurs-in-costa-rica/
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