2026.10.15
On August 31, Inter-American Development Bank’s investment arm (IDB Invest) signed a loan agreement with Banco Internacional S.A. (Banco Internacional), one of the main banks in the Republic of Ecuador, utilizing the "Trust Fund Achieving Development in Latin America and the Caribbean" (TADAC*), a fund to which the Japan International Cooperation Agency (JICA) contributes. On September 23, a signing ceremony was held in Quito, the capital of Ecuador, attended by representatives from Banco Internacional, IDB Invest, the JICA Ecuador Office, and the Embassy of Japan in Ecuador among others.
Tri-partite Meeting Celebrating the Signing of Loan Agreement held on September 23
IDB Invest will provide Banco Internacional with a loan of USD 75 million in total, of which USD 25 million contributed from TADAC. This project is expected to enable Banco Internacional to expand lending to small and medium-sized enterprises (SMEs), thereby contributing to SME development and job creation in Ecuador.
(*Note)
JICA has committed to investments up to USD 1.5 billion in the Trust Fund Achieving Development of Latin America and the Caribbean (TADAC). The Fund is established within IDB, the largest development finance institution in Latin America and the Caribbean region, and managed by IDB Invest, the private sector investment arm of the IDB Group. TADAC is a mechanism for providing financing to private-sector companies in coordination with loans extended by IDB Invest. Through its Private Sector Investment and Finance operations, JICA invests in TADAC, aiming to help narrow the funding gap required to achieve the SDGs in Latin America and the Caribbean and to contribute to sustainable socio-economic development.
The project outline is explained below.
- Borrower
Banco Internacional
- Country (Target Areas)
Republic of Ecuador
- Loan Amount
25 million USD
- Project Title
Senior loan to support SME portfolio in Ecuador
- Project Purpose
This project aims to bridge a critical gap in small and medium-sized enterprises (SMEs) lending by providing a long-term loan to Banco Internacional, thereby improving the borrower's access to medium-term financing and optimizing the balance between working capital and term loans. Additionally, it seeks to foster the borrower's digitalization - streamlining loan origination, reducing service delivery costs, and enhancing the customer experience - to facilitate service provision to a broader customer base.
- Project Component
The financing from this project will serve as a source of funds for Banco Internacional to expand its lending to SMEs. Additionally, through technical assistance from IDB Invest, the project is expected to contribute to capacity building by improving customer segmentation and targeting.
- Contribution to SDGs
Goal 8 (Decent work and economic growth)
Goal 9 (Industry, innovation and infrastructure)
Goal 17 (Partnerships for the goals)
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