MICROCAPITAL BRIEF: IFC Loans $50m to Caja de Compensacion de Asignacion Familiar (CCAF) Los Heroes of Chile for Lending to Low-income Workers, Retirees

The World Bank Group’s International Finance Corporation (IFC) recently agreed to issue a five-year loan of USD 50 million to the Chilean nonprofit Caja de Compensacion de Asignacion Familiar (CCAF) Los Heroes. In Chile, cajas de compensacion, which form part of the nation’s social security system, are the only institutions authorized to provide payroll loans.

Marcelo Castellanos, IFC Manager for the Financial Institutions Group in Latin America and the Caribbean, explained that this is the “first international loan to a caja de compensacion in Chile…. Through this investment, IFC is supporting the strengthening of the financial markets in Chile and helping to expand the access to quality financial services to its population.”

Founded in 1955, CCAF Los Heroes provides insurance, credit and other services to 938,000 workers and retirees as of December 2017.

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and total assets of USD 95 billion as of September 2017.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) the International Finance Corporation (IFC); (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed funds totaling USD 44 billion.

Sources and Additional Resources

IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/vwAllDocumentsByUNID_NL/F4CEF217B6F6EEF285258278004F1ACF?opendocument

CCAF Los Heroes financials
https://www.losheroes.cl/wps/wcm/connect/internet/trabajadores/nuestra-empresa/relacion-con-inversionistas/informacion-financiera/estados-financieros/

CCAF Los Heroes annual reports
https://www.losheroes.cl/wps/wcm/connect/internet/trabajadores/nuestra-empresa/relacion-con-inversionistas/informacion-financiera/memoria-anual

IFC budget for fiscal year 2018
http://www.ifc.org/wps/wcm/connect/cbd63894-c62a-453c-bfc8-92b8f8a3155f/IFC+FY18+Q1+MDA+and+FS_FINAL.pdf?MOD=AJPERES

World Bank Group
http://worldbankgroup.org/

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