Caja Los Héroes’s $50 Million Loan

Barros & Errázuriz and Alessandri advised on the transaction

IDB Invest, a member of the IDB Group, has provided a $50 million loan to Caja de Compensación de Asignación Familiar Los Héroes (Caja Los Héroes), with a tenor of six years. This financing will allow Caja Los Héroes to deepen and expand its financial inclusion and digital transformation program.

The program is aimed at senior citizens (known as the Silver Economy), as well as the unbanked population, including low-income populations and immigrants. Both groups are financially underserved, but are increasingly relevant to the region’s economy. As part of the program, the platform will offer access to debit cards and virtual accounts.

IDB Invest will work with Caja Los Héroes to develop a digital financial education program focused on the Silver Economy. The rapid learning of the platform and its proper use will be promoted, thus allowing access to the financial services it offers. In addition, IDB Invest will accompany Caja Los Héroes with technical support in the area of ??gender equality, supporting them to implement the Gender Parity Initiative (IPG, for its acronym in Spanish) in its affiliated companies. Finally, an evaluation of the impact of the credit to the beneficiaries will also be carried out.

This deal potentially contributes to three United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Redued Inequalities (SDG 10).

With this deal, IDB Invest seeks to support the Silver Economy in Chile, which is particularly relevant given the impact generated by COVID-19, by improving access to financing for this segment of the population and covering its health and medical expenses.

Barros & Errázuriz advised Caja de Compensación de Asignación Familiar Los Héroes with Víctor Barros Echeverría (Picture), Pedro Pablo Cruz Morandé and Juan Pablo Larraín.

Alessandri advised BID Invest with Fernando Jamarne and José Antonio Cuadra.

Involved fees earner: José Antonio Cuadra – Alessandri Abogados; Fernando Jamarne – Alessandri Abogados; Víctor Barros Echeverría – Barros & Errázuriz Abogados; Pedro Pablo Cruz Morandé – Barros & Errázuriz Abogados; Juan Pablo Larraín – Barros & Errázuriz Abogados;

Law Firms: Alessandri Abogados; Barros & Errázuriz Abogados;

Clients: Caja de Compensación de Asignación Familiar Los Héroes; IDB Invest;

Author: Ambrogio Visconti.