IDB Invest granted USD 40 million in financing to the Sartor MHE Private Investment Fund in Chile, with the aim of improving access to credit for local micro, small and medium-sized enterprises (MSMEs).

The proceeds will be used to purchase and accumulate endorsable mortgage loans originated by Creditú Administradora de Mútuos Hipotecarios S.A. (part of AVLA S.A.) and insured by AVLA Seguros de Credito S.A., for a future asset backed securitization in the Chilean local capital markets. The line is expected to support several securitization cycles and has a maximum availability period of 6 years.

The operation will support and improve MSMEs’ access to financing in Chile through an innovative credit insurance product that AVLA S.A. offers to its clients, allowing access to more competitive funding costs.

Additionally, the project will support several future MSME loan ABS issuances, enabling the creation of a new asset class in the Chilean capital markets that eventually contributes to the allocation of institutional money for small and medium enterprises.

This transaction contributes to three United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), and Responsible consumption and production (SDG 12).