Early Warning System

Countries

Colombia

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

IDB Invest (IDBI)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Completed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

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

Mar 30, 2018

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

Finanzauto S.A.

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance
Transport

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)

$ 15.00 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.

Project Cost (USD)

$ 40.00 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.

Bank Documents

The financing consists of: (i) an A loan from the Inter-American Development Bank (IDB) for the COP

Primary Source

Original disclosure @ IIC website

Updated in EWS Jun 9, 2025

Disclosed by Bank Jan 24, 2018

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.

According to the IDB Invest, The financing consists of: (i) an A loan from the Inter-American Development Bank (IDB) for the COP equivalent of up to US$10 million; and (ii) a B loan from the IDB in the COP equivalent of approximately US$20 million. A term of up to five years is expected for the A loan, with no grace period. The term of the B loan(s) will be defined based on market conditions. With financing, Finanzauto S.A. will be able to offer loans to micro-, small-, and medium-sized enterprises (MSMEs) in Colombia’s transportation sector and various economic sectors that purchase vehicles as part of their productive assets for the development of their economic activity.

Finanzauto is an unregulated Colombian financial institution with more than 40 years in the market that focuses on passenger and commercial vehicle financing. It has 33,000 clients and conducts 15,000 transactions per year. It is the main unregulated vehicle financing institution in the country. Finanzauto has 150 points of service in the country in six cities and has formed partnerships with close to 240 car dealers through which it provides financing. As of June 2017, it had 380 employees. As of the same date, it had equity of US$119 million and assets of US$280 million.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

E&S category according to the bank: FI-3

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

IDB Invest (IDBI)

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.

Finanzauto Factoring SA (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.

Finanzauto is an unregulated Colombian financial institution with more than 40 years in the market that focuses on passenger and commercial vehicle financing. It has 33,000 clients and conducts 15,000 transactions per year. It is the main unregulated vehicle financing institution in the country. Finanzauto has 150 points of service in the country in six cities and has formed partnerships with close to 240 car dealers through which it provides financing. As of June 2017, it had 380 employees. As of the same date, it had equity of US$119 million and assets of US$280 million.

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.

For inquiries about the Project, contact:

Client Contact name: Santiago Cleves Bayón
Title: Planning Director
Phone number: 571 7499000 ext 530
email address: santiago.cleves@finanzauto.com.co

For inquiries and comments to IIC, contact:
IIC’s Communications Group
E-mail: divulgacionpublica@iadb.org

ACCOUNTABILITY MECHANISM OF IIC
The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).