IDB Invest funds fintech loans

IDB Invest funds fintech loans

Loans Funds Debt Coronavirus Latin America US

IDB Invest said it put $50 million into a credit fund from US investment firm Victory Park Capital to provide loans to financial technology (fintech) companies in Latin America and the Caribbean.

The eight-year loan from IDB Invest "will support one of the main alternative investment companies worldwide to expand its operations in the region and promote the development of a new asset class that is currently not available in the market," the multilateral lender said in a press release on Tuesday.

IDB Invest also said it will help Victory Park Capital promote gender equality at the firm and its portfolio of fintech companies.

Fintech companies, IDB Invest added, could play a greater role in economies in the region, based on the reaction in the credit markets to the coronavirus outbreak.

IDB Invest initially contemplated lending to the fintech credit fund in July last year, the same month it provided a three-year, BRL100 million ($19 million) for the Brazilian financial services firm Omni to provide microloans to fintechs.

Victory Park Capital, meanwhile, added $150 million to an existing credit line for the Mexican fintech Konfío in September last year.