IFC, JICA, FinDev Canada Invest $415M in Guatemala’s Banco Industrial

The International Finance Corporation (IFC), the Japan International Cooperation Agency (JICA), and FinDev Canada have announced a USD 415 million investment in Banco Industrial, S.A., Guatemala’s largest financial institution. The landmark deal is designed to accelerate green finance, improve access to sustainable housing, and expand credit for small and medium-sized enterprises (SMEs), especially those led by women.

The financing package was structured and led by IFC, with contributions of USD 190 million from IFC, USD 150 million from JICA, and USD 75 million from FinDev Canada. Together, the partners aim to channel resources into sectors critical for Guatemala’s climate resilience, housing needs, and economic competitiveness.

Financing for Sustainable Development

The partnership will support projects that address pressing national challenges, including:

• Climate resilience – financing for green buildings, renewable energy, and climate-smart agriculture to help mitigate the impacts of extreme weather.

• Housing deficit – support for new housing construction and affordable mortgages, with particular focus on the “silver economy”—Guatemalans over 50 years of age who face barriers to accessing quality housing.

• SME financing – expanded credit lines for small and medium-sized enterprises, which represent 40% of Guatemala’s GDP and provide 77% of employment, but often lack sufficient access to finance, especially women-led firms.

Voices from the Partners

Luis Fernando Prado Ortiz, Corporate & International Banking Division Manager at Banco Industrial, said the investment would have far-reaching impacts:

“This operation represents enormous opportunities for hundreds of businesses and entrepreneurs. Thanks to these resources, we will finance companies and projects that generate thousands of jobs, supporting Guatemala’s development and prosperity.”

Vittorio Di Bello, Director of IFC’s Financial Institutions Group for Latin America and the Caribbean, highlighted the broad scope of the initiative:

“With JICA and FinDev Canada, we are addressing housing needs, boosting SME competitiveness, and improving climate resilience—while ultimately expanding both the quantity and quality of jobs in Guatemala.”

Ken Kubokura, Chief Representative of JICA’s Guatemala Office, underscored the importance of SMEs in national development:

“SMEs play a vital role in job creation and poverty reduction. This initiative strengthens financial access for SMEs with a gender focus, complementing JICA’s broader cooperation efforts to address irregular migration and foster sustainable growth.”

Paulo Martelli, VP and Chief Investment Officer at FinDev Canada, emphasized the climate focus:

“Guatemala is on the frontlines of climate change. By partnering with IFC and JICA, we are advancing climate action, strengthening enterprises, and supporting quality jobs across Central America.”

Addressing Guatemala’s Structural Challenges

The initiative comes at a critical time for Guatemala, which faces multiple structural hurdles:

• Climate vulnerability – ranked among the world’s most disaster-prone countries, Guatemala regularly suffers from hurricanes, floods, and earthquakes, which devastate agriculture and infrastructure.

• Housing crisis – of Guatemala’s 3.3 million households, about 2.2 million (76%) lack access to quality housing, leaving millions in precarious living conditions.

• SME financing gap – with 370,000 SMEs nationwide, credit shortages limit growth, productivity, and job creation, disproportionately affecting women entrepreneurs.

Longstanding Partnership with IFC

The collaboration builds on IFC’s longstanding relationship with Banco Industrial, which began in 2006. Over the past two decades, IFC has partnered with the bank on a wide range of initiatives, including gender-focused lending, MSME financing, and climate-related investments.

This latest deal demonstrates the ability of multilateral partnerships to leverage private capital for public good, ensuring Guatemala’s financial sector contributes to inclusive and sustainable development.