Tanner CL II (IFC-37934)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Countries
  • Chile
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 12, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Tanner Servicios Financieros S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2018

Disclosed by Bank Mar 22, 2016


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Project Description

The proposed project consists of a 5-year loan for up to US$50 million to be provided by IFC to Tanner Servicios Financieros SA (Tanner) and a 3-year loan for up to US$50 million to be mobilized from other lenders under IFC's B lender program to support its lending activities to small and medium enterprises (SMEs) in Chile.

IFC's long-term financing aims to bring high development impact by enhancing Tanner's capacity to support access to finance for SMEs, resulting in higher growth, employment generation and poverty reduction. Furthermore, the project would also generate a demonstration effect by signaling other private investors about the potential presented by both the factoring and the SME sector in Chile.

The project will support the company’s SME lending, enhancing access to short-term and long-term credit (leasing). Potential E&S risks and impacts associated with the project are likely to be of a medium to low nature, therefore it has been categorized as FI-2 according to the IFC’s Sustainability Framework. Tanner’s portfolio for SME's and other corporate entities is mostly concentrated in the financial sector (32%) with exposure to agriculture, manufacturing and services representing, respectively, 16%, 11% and 11%. Assets are mostly composed of short tenor transactions with 45% of credits maturing under 180 days and majority of remaining assets not exceeding 3 years tenor.

Investment Description
  • International Finance Corporation (IFC)

The proposed project involves a US$50 million loan to Tanner Servicios Financieros, a Chilean company focused on SME financing, leasing and factoring operations.

Tanner's main shareholders are Grupo Massu through Inversiones Bancarias (52.91%); Capital International Private Equity Funds through Inversiones Gables, S.L.U (25.65%) and Inversiones Similan, S.L.U. (1.35%); Jorge Sabag Sabag, the Vice President of the Company, through Asesorias Financieras Belen Ltda. (7.45%); and, Francisco Schulz, the former CEO of Tanner through FSA Fondo de Inversión Privado (6.59%).

Private Actors

Tanner Servicios Financieros SA is one of the leading Chilean non-banking financial institutions, with a market share of 8% in the factoring market as of December-end 2015 and among the main players in the country (holding the 6th place in 2015). Diversified business model focused on secured lending that includes Factoring, Leasing, Corporate lending and Auto Financing. In addition, the Company offers stock, commodities and insurance brokerage services through subsidiaries. As of December 2015, Tanner has over 51.200 active clients, mainly Chilean SMEs.

Tanner's main shareholders are Grupo Massu through Inversiones Bancarias (52.91%); Capital International Private Equity Funds through Inversiones Gables, S.L.U (25.65%) and Inversiones Similan, S.L.U. (1.35%); Jorge Sabag Sabag, the Vice President of the Company, through Asesorias Financieras Belen Ltda. (7.45%); and, Francisco Schulz, the former CEO of Tanner through FSA Fondo de Inversión Privado (6.59%).

Contact Information

Project Contact: Antonio Turner
Director Financiero y de Operaciones, Tanner Servicios Financieros SA
Office Address: Huérfanos 863, 10th Floor, Santiago de Chile
Telephone No.: +562 2674 7538
Email Address:aturner@tanner.cl

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/