Expansion of vehicle financing portfolio for micro, small and medium-size enterprise clients. The Project involves the expansion of an existing car loan business targeting lower income communities. The Project involves loans, for the purchase of motorcycles and other vehicles, to individuals and micro-entrepreneurs in Peru.
This Project is expected to have a positive developmental impact by expanding the availability of credit to micro-, smalland medium-size enterprises in Peru. Most of the financed vehicles will serve as the primary income-generating assets for micro and small enterprises, typically taxi drivers. According to The World Bank, only eight percent of individuals in Peru borrowed from a financial institution in 2017 to start, operate, or expand a business.
Environmental, health, and safety impacts are minimal and will be managed by the Borrower in a manner consistent with the International Finance Corporation’s PerformanceStandards (2012). The Borrower has developed policies and procedures that address environmental risks associated with its financing activities.
Borrower is Kandeo Fund II (Peru), a Qualifying Investment Fund for OPIC as the fund’s General Partner. US sponsor for the project is Kandeo Investment
Advisors Peru SAC, owned 99.9% by Eduardo Michelsen Delgado, a U.S. citizen