IFC, Banco Industrial Launch $850m Financing to Expand MSME Credit in Guatemala

The International Finance Corporation (IFC), a member of the World Bank Group, and Banco Industrial, Guatemala's leading financial institution, have announced a landmark $850 million financing package designed to expand access to credit for micro, small, and medium-sized enterprises (MSMEs), with a strong focus on women-led businesses.

The transaction is expected to strengthen entrepreneurship, promote job creation, and support long-term economic development across Guatemala.

Unlocking Capital for Small Businesses and Women Entrepreneurs

Structured by IFC, the financing combines IFC's own account funds with a bond issuance in international capital markets. The funds will be used exclusively to support Banco Industrial's lending solutions for MSMEs seeking to:

• Invest in new assets

• Modernize operations

• Expand business activity

• Strengthen competitiveness

A central priority is increasing financing for women-owned and women-led enterprises, which often face disproportionate barriers in accessing credit.

Banco Industrial: Expanding Support for Entrepreneurs

Luis Lara Grojec, CEO of Banco Industrial, welcomed the partnership, describing IFC's support as instrumental in broadening financial services for MSMEs.

"It is our goal and commitment to continue supporting and empowering entrepreneurs — especially women entrepreneurs — not only through financial services, but also through Fundación Bi," he said.

He emphasized that stronger local opportunities can help more people build careers at home and reduce economic pressures that contribute to migration.

New Precedent in International Capital Markets

Banco Industrial's Head of Corporate and International Banking, Luis Fernando Prado Ortiz, noted that the transaction represents the bank's 14th issuance in international capital markets, setting a new benchmark for the institution.

"It reflects the strength of the institution and the confidence that investors have in both the bank and Guatemala," he said.

IFC: Strengthening a Strategic Alliance

Sanaa Abouzaid, IFC Regional Director for Mexico and Central America, said the deal deepens a longstanding partnership while directly supporting job creation.

"This support will energize the MSME sector and contribute directly to job creation throughout the country," she said.

MSMEs at the Core of Guatemala's Economy

MSMEs play a critical role in Guatemala's economic structure:

• Nearly 370,000 MSMEs operate nationwide

• They account for 40% of GDP

• They provide 77% of total employment

Despite their importance, limited access to finance remains a major constraint — especially for women entrepreneurs — restricting growth and innovation.

A Partnership Built Since 2006

The relationship between IFC and Banco Industrial began in 2006 and has expanded across multiple areas, including:

• SME lending

• Women-focused finance

• Green finance initiatives

Since 2022 alone, IFC and Banco Industrial have completed five transactions, reflecting the growing strength of the strategic partnership.

Driving Inclusive Growth and Job Creation

By mobilizing large-scale financing for MSMEs, the $850 million package is expected to expand business investment, strengthen resilience, and unlock employment opportunities across Guatemala.

The deal underscores IFC's broader mission of using blended finance and capital market solutions to drive inclusive private-sector growth in emerging economies.