IFC provides $60 million to BBVA Paraguay to Expand Access to Finance for Small and Medium Enterprises in Export Sector
IFC, a member of the World Bank Group, will provide $60 million to Banco Bilbao Vizcaya Argentaria Paraguay S.A., a subsidiary of Grupo BBVA, to expand access to finance for small and medium entrepreneurs in the export sector and to promote trade.
IFC’s financing consists of a five-year, US$40 million loan and a US$20 million loan through the IFC Managed Co-Lending Portfolio Program, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future loan portfolio.
“We welcome IFC’s continued support to BBVA Paraguay’s expansion,” said Rafael González Moya, Chairman and CEO of BBVA Paraguay. “This new investment strengthens our position in the country’s financial system, particularly for small and medium enterprises, which are essential to trade, economic development and job creation in the country.”
IFC and BBVA Paraguay have been working together in Paraguay since March 2009, when the bank joined IFC’s Global Trade Finance Program with a $15 million trade finance facility that was later increased to US$30 million. In April 2010, IFC committed a $30 million loan to support access to finance for SMEs in the agribusiness sector. More recently, in August 2012, IFC committed an additional $25 million under the IFC Global Warehouse Finance Program to expand access to finance for local farmers, and exporters in the agribusiness sector in Paraguay.
“We look forward to continuing to strengthen our long-term partnership with BBVA Paraguay by helping the bank’s serve important economic sectors and create a more inclusive financial marketplace,” said Salem Rohana, IFC Country Manager for Argentina, Chile, Paraguay, and Uruguay. “Financial institutions such as BBVA Paraguay play a significant role in supporting key drivers of economic growth.”
IFC’s strategy in Paraguay promotes business expansion into other emerging markets, supports micro, small, and medium enterprises, fosters global trade, and protects natural resources through environmentally sustainable business practices. For more information about IFC in Latin America and the Caribbean, visit www.ifc.org/lac.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org.
About Banco Bilbao Vizcaya Argentaria Paraguay S.A.
Banco Bilbao Vizcaya Argentaria Paraguay S.A. is a subsidiary of the Spanish global group Banco Bilbao Vizcaya Argentaria. BBVA Paraguay is the fourth largest bank by loans in Paraguay, catering to large corporations, small and medium-sized companies, as well as individuals. Its services include transactional solutions, saving, credit, and investment support. The financing to the SME’s sector plays a key role in the Bank’s strategy.
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