Los Heroes CL (IFC-40295)

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
Proposed
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
Feb 15, 2018
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
CAJA DE COMPENSACION DE ASIGNACION FAMILIAR LOS HEROES
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.
Project Cost (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 5, 2018

Disclosed by Bank Jan 8, 2018


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Project Description

The proposed project consists of an up to US$50 million facility to be committed in two tranches, in unidades de fomento ("UF", Chilean inflation-indexed currency) or Chilean Pesos equivalent to Caja de Compensacion de Asignacion Familiar Los Heroes ("Caja Los Heroes", "Los Heroes" or the "Company"), to support the Company's social credit lending program focused on low-income individuals underserved by the traditional financial system in Chile.


Founded in 1955, Caja Los Heroes is a non-profit organization. It is the third largest Caja de Compensacion in Chile with 15% market share and serving nearly 1 million members. Headquartered in Santiago, Los Heroes has the largest branch network in the Cajas industry across the 15 Chilean regions. Leveraging on this structure, Caja Los Heroes has 3 main pillars: (i) transactional business: distributing several social security benefits for the Chilean government and as required by law; (ii) social financial products: fostering financial inclusion in Chile by offering affordable financial products to mainly underserved segments of the population (low income workers and retirees); and (iii) additional social benefits: providing social benefits to their members with a focus on health and wellbeing but also education, entertainment and social initiatives.

Investment Description
  • International Finance Corporation (IFC)
Private Actors

Caja de Compensación de Asignación Familiar Los Héroes engages in the provision of social security services and related activities in Chile. It operates in two segments, Social Welfare and Others, and Financial Social Contributions. The company also provides loans for social and health-related needs; credit for higher education; mortgage loans; insurance; savings account for residential lease; cash awards; discounts and promotions for health services; free dental services; discounts in the purchase of medicines; emergency assistance rooms; elderly assistance phone services; free entrance to concerts and events; online portal for members; and payment collection and compensation services.

Contact Information

For Inquiries About the Project, Contact:
Caja de Compensacion de Asignacion Familiar Los Heroes
Jorge Oliva
CFO
+562 29648187
jolivam@losheroes.cl
Av. Holanda 100
www.losheroes.cl

For Inquiries and Comments About IFC, Contact:
General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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/