The International Finance Corporation (IFC), a member of the World Bank Group, has made a historic capital investment of USD 150 million in Holding Davivienda Internacional S.A., the subsidiary of Banco Davivienda with a presence in Central America. This significant operation aims to expand access to financing for small and medium-sized enterprises (SMEs), promote job creation, and support sustainability and climate resilience initiatives in the region. As part of this regional equity investment, IFC subscribed to ordinary shares issued by Holding Davivienda Internacional S.A. The investment strengthens Davivienda's regional presence and is part of the process of integrating its operations with Scotiabank in Panama and Costa Rica. This operation will have an impact on multiple dimensions: it will promote financial inclusion, foster job creation, and strengthen sustainability in Panama, Costa Rica, El Salvador, and Honduras, said Di Bello. IFC and Davivienda seek to mitigate the challenges limiting the growth of Central American SMEs. With IFC's entry as a shareholder of our operations in Central America, we will continue to expand access to financing, drive business development, and accompany the transition to a more sustainable economy in the region, he added. In turn, Vittorio Di Bello, Regional Director of the Financial Institutions Group for Latin America and Europe at IFC, emphasized the magnitude and transformative reach of the operation. Currently, the growth potential of these companies is hindered by a lack of credit history, informality, and barriers to access to financing, creating a financial gap equivalent to 28% of the regional GDP. Furthermore, the investment addresses Central America's vulnerability to natural disasters such as droughts, floods, and hurricanes, supporting the transition to a more sustainable economy and climate resilience. Collaboration between IFC and Davivienda dates back to 1973 and includes various advisory service commitments and previous investments focused on supporting the growth of the bank's SME and housing portfolios. This strategic alliance will allow for the mobilization of a greater volume of resources towards segments traditionally underserved in Panama, Costa Rica, Honduras, and El Salvador. Javier Suárez, CEO of Banco Davivienda and Davivienda Group, highlighted the purpose of the alliance: Our relationship with IFC has always been framed by a common purpose of creating opportunities and positive impact in the countries where we operate. IFC becomes a shareholder of Davivienda to boost SMEs and sustainability in Central America. The investment accompanies the integration of Davivienda's operations with Scotiabank in Panama and Costa Rica, allowing the IFC and Davivienda alliance to mobilize greater resources towards segments traditionally underserved. We are proud to reaffirm our long-standing alliance with Davivienda through a truly transformative investment, both in magnitude and in the equity acquisition and its regional reach, he noted.
