Investment in Colombian Finsocial to reduce economic vulnerability

Norfund has committed a 10 million USD local currency equivalent, senior loan to Finsocial, a payroll discount lender in Colombia. The loans offered by Finsocial are used by teachers and pensioners for starting small businesses, further education and housing. 

At left, Heidi Achong, Investment Manager -Financial Institutions, Norfund. At right Santiago Botero, Founder and Chief Executive Officer of Finsocial (extreme right) accompanied by Mario Fernandez, Chairman of the Board.

Finsocial has a 175 million USD loan portfolio, and 800 employees in 27 offices spread over 20 provinces in Colombia.  

Accessing capital via loans and equity investments is crucial to economic growth and for the development of businesses. For individual households, loans and savings facilities help to reduce economic vulnerability.

In Colombia financial inclusion is low at 46% and even lower for women according to the Global Partnership for Financial Inclusion.

Norfund will also work with Finsocial to help it even further develop its gender strategy. Norfund is part of the 2X Collaborative, engaging actively with peers to deliver tangible results with our partners on the ground. Finsocial is already meeting a few of the 2x criteria and has become a part of the collaborative.