Tanner CL II (IFC-37934)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Chile
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 12, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Tanner Servicios Financieros S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. 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

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
Here you can find a list of individual development financial institutions that finance the project.

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%).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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/

How it works

How it works