BAC Guatemala SME Financing Agreement

repaid

The proposed transaction consists of a senior unsecured loan to Banco de América Central, S.A. (“BAC GT” or the “Bank”) denominated in US dollars (“US$”) for up to US$100 million (the “project”). Project financing will be structured as follows: (i) US$75 million from IDB Invest; (ii) US$25 million mobilized through potential cofinancing, financed by IDB Invest in its capacity as administrator of the Chinese Cofinancing Fund for Latin America and the Caribbean (the “Fund”). The objective of the project is to support BAC GT in its efforts to increase financing to small and medium-sized enterprises (“SMEs”) and contribute to the development of value chains by providing financing to anchor companies (mid-market) within Guatemala. At the same time, IDB Invest will provide advisory services focused on the aforementioned supply chains with a focus on enhancing the SMEs’ value added. As part of its institutional response and in order to mitigate the economic crisis caused by the COVID-19 pandemic, IDB Invest is prioritizing the SME sector in the region by taking appropriate steps to address the difficulties they face accessing financing through financial institutions.