IDB Invest, the private-investment member of the US-based Inter-American Development Bank (IDB) Group, recently announced a loan of USD 15 million to Cordada, a funder of financial technology (fintech) and other lenders to micro-, small and medium-sized enterprises (MSMEs) in Peru, Mexico and Chile. The deal includes a renewable two-year term as well as advisory services to strengthen Cordada’s corporate governance and that of its clients.
Cordada was founded in 2019 by three individuals in partnership with Frontal Trust, a Chilean investment fund manager that specializes in alternative assets. Cordada is based in Chile and holds USD 110 million in assets under management as of 2022, with 75 partners that serve a total of 3,540 MSMEs.
The goal of IDB Invest is to “finance sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development” across Latin America and the Caribbean. The institution is owned by its 47 member countries and holds a portfolio of USD 14 billion as of 2022.
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 2021, it reported having issued USD 14 billion in loans and grants, ending the year with assets of USD 152 billion.
By Nithin Naren, Research Associate
Sources and Additional Resources
IDB Invest press release
https://www.idbinvest.org/en/news-media/idb-invest-cordada-strengthen-access-msmes-chile-peru-mexico
Cordada Homepage
https://www.cordada.com
IDB Invest Background
https://idbinvest.org/en/about-us
IDB Invest Financial Statements
https://idbinvest.org/en/publications/2021-annual-report#
IDB Group Financial Statements
https://publications.iadb.org/publications/english/document/Inter-American-Development-Bank-Annual-Report-2021-The-Year-in-Review.pdf
Previous MicroCapital article on IDB Invest
https://www.microcapital.org/microcapital-brief-banco-compartamos-borrows-50m-from-idb-invest-to-on-lend-to-micro-small-enterprises-in-mexico-focusing-on-female-run-enterprises/
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