IFC Approves US$45 M Financing for Caja 18 to Support Low-Income Women and Retirees in Chile

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The International Finance Corporation (IFC), a member of the World Bank Group (WBG), has announced the approval of a US$45 million financing package for Caja de Compensación de Asignación Familiar Caja 18 de Septiembre (Caja 18). The funding will expand Caja 18’s social credit portfolio, primarily targeting retirees and low-income women workers, two vulnerable groups in Chile with limited access to traditional banking services.

The financing consists of a US$10 million loan, a US$30 million syndicated loan, and a US$5 million Trust Loan. The syndicated loan will be backed by Blue Orchard, ResponsAbility, and ILX, and will be implemented under the Managed Co-Lending Portfolio One Planet Program. This package is structured in two equal tranches of US$22.5 million each, with the first tranche committed on November 8, 2024, and the second expected to be finalized by the second quarter of 2025.

A Strategic Move to Empower Vulnerable Groups

This financing is designed to increase access to social credit for retirees and low-income women workers. Of the proceeds, 60% will go towards retirees, and 40% will benefit low-income women workers. This initiative is part of the broader Silver Economy initiative by the IFC, which focuses on creating innovative financial products for individuals aged 50 and above in Latin America and the Caribbean.

Helena de la Torre, IFC’s Regional Industry Manager for Brazil and the Southern Cone emphasized the significance of this investment in improving financial resilience: “By supporting Caja 18, IFC is helping expand financial access to underserved groups, such as retirees and low-income women workers, enabling them to improve their financial resilience and quality of life. This investment aligns with our commitment to financial inclusion and innovation in Latin America, particularly in Chile, where we continue to support initiatives that empower vulnerable populations.”

Strengthening Social Credit and Expanding Financial Inclusion

According to Alvaro Cambara, General Manager of Caja 18, this financing will allow the institution to diversify its sources of funding, enhancing its capacity to support the “Silver Economy” and women workers: “This loan allows Caja 18 to further diversify its sources of financing and will enable continued growth in social credit placements in the pensioners’ segment and working women, both of which have been key focus areas in recent years. These segments have traditionally had limited access to traditional banking.”

As of 2024, women workers account for 23.1% of Caja 18’s loan book, while retirees represent 40.2%. Caja 18 aims to expand these segments further by offering more tailored social benefits and enhancing its customer service, a feature for which the institution is highly regarded across Chile.

IFC Advisory Support for Customized Products and Services

In addition to the financing package, IFC’s Advisory Services will support Caja 18 in developing specialized financial and non-financial products for retirees, with a particular focus on women. Furthermore, capacity-building initiatives will be implemented to improve Caja 18’s ability to provide high-quality services to underserved affiliates.

The investment is aligned with IFC’s strategic goals in Chile, which include promoting financial inclusion, improving access to finance, and driving innovation. It also supports the WBG Gender Strategy, which works to eliminate barriers for women in owning and controlling assets.

A Milestone for Caja 18

This financing represents Caja 18’s first international syndicated loan, marking a significant milestone in the institution’s efforts to expand its social credit offerings. By addressing the financial needs of low-income women and retirees, this initiative will further enhance financial inclusion in Chile and strengthen the economic resilience of these critical, underserved populations.

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IFC Approves US$45 M Financing for Caja 18 to Support Low-Income Women and Retirees in Chile

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