IFC invests US$40 million in Tanner Servicios Financieros to back the creation of Tanner Banco Digital and support electromobility, MSMEs and women-led businesses in Chile

Santiago, Chile, November 19, 2024 - The International Finance Corporation (IFC), a member of the World Bank Group (WBG), announced an equity investment of US$20 million (in Chilean pesos equivalent) in Tanner Servicios Financieros S.A. to strengthen its capital base and support growth, including the creation of a fully licensed and regulated commercial bank subsidiary. Additionally, IFC has provided a long-term senior unsecured convertible loan of up to US$20 million to finance Tanner's electromobility and MSME portfolios, with a focus on women-owned SMEs (WSMEs).

"We are pleased to support Tanner with this equity and financing package, which presents an excellent opportunity to invest in a leading company focused on SMEs while exploring transformative sectors like electromobility. This initiative is urgently needed and aligns with IFC's mission to promote sustainable and inclusive finance and drive innovation," said Helena de la Torre, IFC's Regional Industry Manager for Brazil and the Southern Cone.

Derek Sassoon, Tanner's general manager, says: "I am convinced that IFC's participation will be a great contribution to addressing the challenges and taking advantage of the opportunities to continue contributing to Chile's economic development, sustainability and electromobility. Their decision to participate in our company again demonstrates their confidence in our vision and the work we do."

The financing will be complemented by advisory services from IFC to support Tanner develop an embedded finance strategy to enhance client acquisition through partnerships with non-financial companies.

Chile has set ambitious climate targets to reduce emissions from energy and transportation, which contribute 60% of greenhouse gases, with transportation alone accounting for 25%. Promoting electromobility is crucial for cutting emissions and decreasing fossil fuel reliance. Banking institutions, such Tanner, can facilitate necessary investments to support this transition toward greener alternatives.

The investment also aligns with IFC's broader strategic goal of promoting financial and social inclusion, as well as the World Bank Group's Gender Strategy 2024-2030, which focuses on expanding economic opportunities through greater ownership and use of assets and enhancing financial inclusion. The World Bank' Group's Country Private Sector Diagnostic identified gender inequality as a key challenge affecting private sector productivity in Chile, highlighting the need to address this gap to foster inclusive economic growth.

About Tanner

Tanner Servicios Financieros is a leading financial institution in the country, which for more than 30 years has supported the development of small and medium-sized companies (SMEs), large companies and individuals through innovative products and services offered throughout an extensive network of service in the country, with a permanent commitment to sustainability. Its main lines of business are national and international factoring, which allows companies to transform their accounts receivable into liquid resources; and automotive credit, for individuals and companies that want to acquire or renew their vehicles, through financing that fits their needs. In addition, clients can access corporate loans, leasing and different types of insurance.

The offer is complemented by the subsidiary Tanner Corredores de Bolsa that provides tailored investment alternatives, through brokerage of financial products and investment management, with a focus on local and international fixed income. Tanner is in the process of creating the banking subsidiary "Tanner Banco Digital", currently in the final stage of the process before the Financial Market Commission.

For more information, visit www.tanner.cl