IDB Invest and Banco Múltiple Promerica de la República Dominicana, S.A. (Promerica) signed an agreement to support the growth of SMEs led by women. As part of this collaboration agreement, IDB Invest has granted financing of up to $10 million to Banco Promerica in the form of a subordinated loan divided into two tranches of up to $5 million each. Each tranche will have a term of up to seven years.
The project will support Promerica’s structure, which has been increasing its capital base to promote the growth of the bank’s small and medium-size enterprise (SME) portfolio. To achieve this, the transaction will strengthen Promerica’s position, which will continue to support its strategy of portfolio growth in this important segment of the national economy.
This transaction is the first in the Dominican Republic that is part of the Women in Finance Initiative (We-Fi), an international alliance that aims to unlock financing and access to markets for women-owned or led businesses.
With funding from the We-Fi program, IDB Invest, the private sector investment arm of the Inter-American Development Bank (IDB), includes advisory services and performance-based incentives to support Promerica’s efforts to grow its portfolio of women-led SMEs. With this accompaniment, Promerica will be developing a value proposition of financial and non-financial solutions to support women entrepreneurs in empowering their businesses, based on a deep understanding of the challenges and barriers that hinder women-led SMEs from accessing financing in the Dominican Republic.
This agreement is expected to contribute to four United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), and Reducing Inequalities (SDG 10).