IFC Grants $200M Loan to Banco BICE to Boost Housing Loans for Women in Chile

The IFC’s financing will enable Banco BICE to enhance its mortgage lending capabilities, specifically targeting women borrowers.

The International Finance Corporation (IFC), a member of the World Bank Group, has announced the signing of a $200 million loan agreement with Banco BICE to finance housing loans, with a particular focus on women borrowers. This loan, which has a five-year tenor and includes a three-year grace period, aims to help Banco BICE expand and diversify its long-term financing, thereby supporting the growth of its housing loan portfolio.

In Chile, a gender gap in access to housing loans persists, with only 41% of all mortgage loans currently going to women, according to data from the Comisión para el Mercado Financiero (CMF). This disparity is further reflected in other financial metrics: only 20% of women have borrowed formally compared to 28% of men, and women account for just 24% of all outstanding commercial loans.

The IFC’s financing will enable Banco BICE to enhance its mortgage lending capabilities, specifically targeting women borrowers. Currently, mortgage lending constitutes 23% of BICE's loan portfolio and is a vital component of the bank’s overall business strategy, complementing its commercial lending activities.

"We greatly value our long-term partnership with Banco BICE. This gender-focused loan will bolster the social and economic empowerment of women, aligning with Banco BICE's strategic goals," said Helena de la Torre, IFC's Regional Industry Manager for Brazil and Southern Cone. "IFC is dedicated to fostering inclusivity within the Chilean financial sector, and this initiative demonstrates the financial viability of a gender-focused approach in mortgage lending, which we hope other banks will replicate."

Alberto Schilling, General Manager of Banco BICE, emphasized the importance of the loan: "This financing is a clear recognition of the World Bank Group’s support for our efforts and commitment to gender equality in the financial market. Currently, 57% of our mortgage loans are granted to women, and with this financing, we expect that percentage to grow even further."

In addition to the loan, IFC will provide Banco BICE with Financial Advisory Services to strengthen its gender strategy. By understanding the specific needs of women borrowers and offering tailored solutions, the initiative aims to address the gender financial gap in Chile more effectively.

This project aligns with IFC's broader strategic goals of promoting financial and social inclusion and supports the World Bank’s gender strategy focused on removing barriers to women's ownership and control of assets.