MICROCAPITAL BRIEF: OPIC Loans $143m to CrediQ for SME Vehicle Loans, Leases in Costa Rica, El Salvador

The Overseas Private Investment Corporation (OPIC), an agency of the US government that seeks to facilitate investment by US-based firms in developing countries, recently loaned USD 143 million to CrediQ Inversiones of Costa Rica and CrediQ El Salvador, two vehicle financing providers owned by Grupo Q of El Salvador. The loan is to be used to provide more auto loans and leases for small and medium-sized enterprises (SMEs) operating in Costa Rica and El Salvador, with an emphasis on SMEs in the agriculture, construction and transportation sectors. The project is a component of the Northern Triangle Initiative, an operation designed by OPIC to promote economic growth and job creation in El Salvador, Guatemala and Honduras.

Founded in 1952 under the name Saquiro, Grupo Q sells used and new cars as well as provides auto loan financing and vehicle repair services to individuals and SMEs in Costa Rica, El Salvador and Honduras. As of June 2017, CrediQ reported total assets of USD 186 million and gross outstanding loans of USD 161 million. For the twelve months ending June 2017, it reported return on equity (ROE) of 25 percent and return on assets (ROA) of 3.9 percent.

Established in 1971, OPIC is an agency of the US government whose function is to support investing by US-based firms in emerging economies. OPIC provides loans, grants, political-risk insurance and advisory services to US-based private equity funds; local financial institutions; and projects in the healthcare, energy, technology and education sectors. Its work has reached 160 countries since its inception. During 2017, the organization originated USD 3.8 billion in new commitments, mobilizing total capital of USD 6.8 billion and closing the year with 90 active projects.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

OPIC press release
https://www.opic.gov/press-releases/2018/opic-board-approves-18-billion-development-projects-across-four-continents

OPIC project detail
https://www.opic.gov/sites/default/files/files/9000052844.pdf

CrediQ background
http://www.crediq.com/index.php/grupo-empresarial/quienes-somos-sv.html

CrediQ financial info
https://ssf.gob.sv/descargas/Paginas_publicas/SENAVAL/dar/html_informacion_mercado/clasificaciones_riesgo/informes/2017/FICHT%20junio17/CrediQ%20FITCH%20JUN17.pdf

Grupo Q background
http://www.grupoq.com/nosotros.html

MicroCapital Brief; June 12, 2018; OPIC Loans $5m in Local Currency to Grameen Impact Investments India for SMEs
https://www.microcapital.org/microcapital-brief-opic-loans-5m-in-local-currency-to-grameen-impact-investments-india-for-smes/

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