Fedecredito (DPR 2023) - Women Entrepreneurs Empowerment Bond

in implementation

The project consists of the issuance byFedecredito(the “Sponsor”) of its first Social Bond with a Gender Lens under its Remittance Securitization Program (“RSP” or the “Program”). The total amount of the Bond is up to US$85 million with a seven-year term. IDB Invest’s subscription will be of up to US$25 million. Other potential investors will participate with up to US$60 million. Under the Program, Fedecrédito (the “Sponsor”) has sold all its rights over its existing and future US-denominated Remittance Rights (“RR”) to Fedecredito Remittance Funding Company, the Special Purpose Vehicle (“SPV”). The SPV issues notes whose repayment of principal and interest is backed by these RR. The payment of the RR from the SPV to Fedecredito is done with the proceeds of the notes issued. This is IDB Invest’s second transaction with Fedecredito’s RSP.The proceeds of the Bond will be aimed at expanding the financing offered by Fedecredito’s Member Entities (“ME”) to Micro, Small and Medium-sized enterprises (“MSMEs”) and Women-led MSME (“WMSME”).