The alliance between Citi and Compartamos Financiera consists of a US$ 20MM Medium Term Loan – 65% of the funds will be used to finance loans to women entrepreneurs.
Lima – As part of their mission of promoting financial inclusion and continuing to support small and micro entrepreneurs, Compartamos Financiera received a US$20 million Local Currency equivalent loan from Citi Peru. 65% of the funds will be used to finance companies owned by women, and the transaction has been qualified as "2X", a global initiative that seeks to mobilize capital to support female-managed businesses.
This financing is part of the financial inclusion program that Citibank NA maintains with the U.S. International Development Finance Corporation (DFC) and represents the first transaction of its type in Peru. Compartamos Financiera is the country’s leading financial entity to promote financial access in the country.
Citi awarded the loan as part of its Social Finance Strategy in partnership with high-impact investors and multilateral development organizations to broaden access to credit in low- and mid-income countries. It builds on initiatives launched in 2022, when Citi Peru closed several social finance deals with partners in the financial and education sectors.
“This financing will allow Compartamos to enter new markets in Peru and reach more clients in an environment of controlled risk and with a focus on financial inclusion, integrating more people into the formal financial system. Citi is excited to be part of thecountry’s journey toward financial inclusion by reaffirming our commitment to our communities,” remarked Miguel Uccelli, CCO at Citi Peru.
“This deal is part of Citi’s social finance effort in Latin America and the Caribbean, which raised US$ 2 billion last year for projects related to financial inclusion, access to services and basic infrastructure for low-income populations in the countries where we operate,” said Borja García, Head de Structuring and Latin America and the Caribbean for Citi Social Finance.
Ralph Guerra, Compartamos Financiera CEO, also highlighted the importance of this type of initiatives: “In the last five years, we have successfully inserted and reinserted more than one million entrepreneurs into the regulated financial system; of which almost 900 thousand are women, mainly through our group credit loans. With the financing granted by Citi, we will continue to promote access to banking services for more Peruvian entrepreneurs and, with this, continue to accompany them in their growth and that of their families.”
This most recent loan is part of Citi’s commitment to invest US$ 1 trillion in sustainable financing by 2030. It contributes to progress toward several UN Sustainable Development Goals, including SDG 1, to eliminate poverty, SDG 5, to promote gender equality, and SDG 8, to support decent work and economic growth.
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
Acerca de Compartamos Financiera
Compartamos Financiera es una institución peruana de servicios financieros que forma parte del Grupo Gentera, Holding Mexicana líder en rubro de las microfinanzas. La financiera otorga créditos a pequeños empresarios, para atender necesidades de capital de trabajo y de inversión, a través de dos productos principales: i) Crédito Grupal y ii) Crédito Individual. La financiera es líder en el otorgamiento de créditos grupales a través de su “Préstamo Súper Mujer”, producto pionero en el país que le ha permitido incursionar en nuevos mercados.
The U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.