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Overview

[China Co-Financing Fund] IDB administers 20 million USD loan from CHC to Salvadoreño DPR Funding Ltd. for Banco Davivienda MSME Financing Partnership

Commitments (Constant USD, 2023)$20,923,968
Commitment Year•2015Country of Activity•El SalvadorDirect Recipient Country of Incorporation•Cayman IslandsSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 19, 2015
First repayment
Jul 18, 2018
Last repayment
Jul 17, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • Inter-American Development Bank

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Salvadoreño DPR Funding Ltd.

Implementing agencies

Intergovernmental Organizations

  • China Co-Financing Fund for Latin America and the Caribbean (CHC)

Private Sector

  • Banco Davivienda Salvadoreño, S.A. (Banco Davivienda El Salvador) (formerly Banco Salvadoreño (Bancosal))

Loan desecription

[China Co-Financing Fund] IDB administers 20 million USD loan from CHC to Salvadoreño DPR Funding Ltd. for Banco Davivienda MSME Financing Partnership

Grace period•3 yearsInterest type•UnknownMaturity•8 years

Narrative

Full Description

Project narrative

On 9 July 2015, the Inter-American Development Bank (IDB) signed a loan contract with Salvadoreño DPR Funding Ltd. for the Banco Davivienda MSME Financing Partnership, through which the IDB would provide 60 million USD from its ordinary capital (Loan 3490/OC-ES), and the People's Bank of China would provide 20 million USD (Loan 3490/CH-ES) via the China Co-Financing Fund for Latin America and the Caribbean (CHC). The 80 million USD of financing authorized by the IDB would cover the total cost of the project. The IDB approval date for this loan financing was 11 June 2015, and it refers to this project as "ES-L1094 : Banco Davivienda MSME Financing Partnership". According to the project abstract, the loan was expected to have a maturity up to 8 years and a grace period up to 3 years. Beginning 1 January 2016, the project operation manager was the Inter-American Investment Corporation (IIC, now known as IDB Invest). This loan would be used for increasing access to finance for micro, small, and medium-sized enterprises (MSMEs) in El Salvador through participation in Diversified Payment Rights (DPR) Program. The borrower of this loan financing would be Salvadoreño DPR Funding Ltd., an offshore SPV based in the Cayman Islands, and the loan funds would be used to finance the portfolio of loans for SMEs administered by Banco Davivienda. The Project Abstract notes at least 25% of the financing proceeds is expected to go towards women-led MSMEs. The IDB lists the project status as "Closed". The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see umbrella Record ID#86526.

Staff comments

Transaction amount has been coded as 20 million USD under assumption that the amount authorized to be loaned on June 11, 2015 was the same amount actually loaned in the contract, although there is not independent confirmation of this.