IDB Invest makes first disbursement of financing to Caja La Araucana with legal advice from Alessandri Abogados

Alessandri’s Banking and Finance team acted as local legal counsel to IDB Invest in the operation, which seeks to promote the financial inclusion of pensioners and workers in Chile.

Alessandri - IDB Invest has completed the first disbursement of a $70 million financial package to Caja La Araucana, with the aim of fostering the financial inclusion of traditionally underserved sectors, such as low-income pensioners and female workers. Alessandri Abogados, through its Banking and Finance team, acted as local legal counsel to IDB Invest in this transaction, providing support in the structuring and execution of the financing.

The financing package, which includes a direct loan of up to $50 million from IDB Invest and $20 million from responsAbility Investments AG, will allow Caja La Araucana to expand its social credit portfolio and develop new financial products, such as the green social credit. The latter is aimed at the acquisition of electromobility and energy efficiency goods, thus promoting responsible and sustainable financing.

"Alessandri’s participation in this operation reaffirms our commitment to the development of projects that contribute to the economic and social progress of Chile, facilitating access to financing in sectors with difficulties in accessing traditional banking", said José Antonio Cuadra, partner of the firm’s Banking and Finance area.

The financing not only seeks to expand access to credit for people with low access to financial products, but also to strengthen Caja La Araucana’s sustainability strategy, aligning with the UN Sustainable Development Goals (SDGs), such as gender equality, reduction of inequalities and climate finance.

alessandri.com