Chile’s Tanner Servicios Financieros lands $40m IFC investment
Tanner Servicios Financieros, one of the largest non-banking financial institutions in Chile, has secured a $40 million investment from the International Finance Corporation (IFC).
Tanner secures $40m from IFC
The investment comprises a $20 million equity investment in newly issued common shares, and a five-year senior unsecured convertible loan of “up to $20 million”, a statement from the IFC confirms.
The IFC says the equity funding will strengthen the company’s capital base and support its growth, “including the creation of a fully licensed and regulated commercial bank subsidiary”.
The convertible loan will be used to finance Tanner’s MSME and automotive credit operations; two of the firm’s main lines of business. The financing will focus on female-founded businesses specifically, in line with the World Bank Group’s Gender Strategy 2024 to 2030.
The IFC, a member of the World Bank Group (WBG), has backed Tanner since 2007, when it first picked up a 17.6% stake in the firm.
It later went on to provide a similar investment package in 2016, which consisted of two $50 million long-term loans.
This partnership has more recently extended to support Tanner’s intention to establish a banking subsidiary and “develop an embedded finance strategy”, aimed at enhancing client acquisition through partnerships with non-financial companies.
In January, the firm secured provisional authorisation from the Comisión para el Mercado Financiero (CMF) – the Chilean Financial Market Commission – to establish a banking subsidiary called Tanner Banco Digital.
This kickstarted a three-stage phased approval process, with the IFC now confirming that, 11 months later, the firm is “currently in the final stage” of this process.
