- The project will focus on women-led MSMEs in the Dominican Republic
- The financing includes a performance-based incentive and advisory services from Women Entrepreneurs Finance Initiative (We-Fi)
WASHINGTON, USA – IDB Invest is providing up to $25 million in long-term financing to Banco Múltiple Caribe Internacional S.A. (Banco Caribe) to increase access to capital for micro, small, and medium-sized enterprises (MSMEs) in the Dominican Republic. The project aims to address key barriers that hinder business expansion for MSMEs, and particularly for women entrepreneurs.
The financing will help Banco Caribe diversify its funding sources, extending its long-term funding stability and reducing its reliance on short-term deposits.
The financing package consists of two components: a senior loan of up to $25 million with a tenor of up to five years, and a blended finance component of up to $150,000 from We-Fi in the form of performance-based incentives. These incentives will be granted upon the achievement of annual targets with the objective of increasing Banco Caribe’s client portfolio for women-owned or led small and medium-sized enterprises.
Additionally, IDB Invest will provide advisory support under the WE Finance Code (WE Code) initiative, strengthening Banco Caribe’s women’s banking strategy. This assistance includes improving sex-disaggregated data collection and conducting a market diagnostic to size the women-led SME segment. The initiative will also enhance non-financial services while optimizing the credit approval process to better accommodate women-led SMEs.
Access to financial services in the Dominican Republic has improved but remains below the regional average, limiting economic opportunities for MSMEs, which make up 98.4 percent of businesses. These enterprises face a financing gap equal to 19.3 percent of GDP. Women entrepreneurs face even greater barriers, including limited access to guarantees and tailored financial products. Bridging these gaps is key to advancing financial inclusion, economic empowerment, and growth – reinforcing the need for targeted solutions like this financing initiative.
