IDB Invest to finance SMEs in Colombia

IDB Invest, the financial arm of IDB Group focused on supporting small and medium-sized companies and projects, announced its intention to lodge up to COP 100.2 billion (USD 25 million) in a fund managed by SURA Investments, a subsidiary of SURA Asset Management is one of the leading asset managers in Latin America, with USD 18 billion in assets and investment mandates both in the region and abroad. This agreement aims to support the sustainable growth of small and medium-sized companies in Colombia by providing them access to the private credit market.

Additionally, it will contribute to developing the first generation of investment vehicles focused on this sector in the country.

The fund (FCP SURA Private Debt Fund) has entered into an agreement with the Colombian fintech company Finaktiva. Among other initiatives, Finakstiva has developed a factoring solution for SMEs, which contributes to reducing the financing gap through digital channels.

SMEs in Colombia currently account for approximately 67 percent of the jobs created in the country. However, only 40 percent of SMEs have sought financing from commercial banks, primarily due to high transactional costs and other factors.

According to IDB Invest, accessing alternative sources, such as private debt financing, that could complement traditional retail banking credit, has the potential to significantly reduce the financing gap for Colombian SMEs.

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