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AFD Grants $20 Million Subordinated Loan to Peru’s Caja Huancayo for Green, Inclusive Lending

The seven-year subordinated credit is AFD’s first to the lender, bolstering capital for climate and gender-focused lending.

Overview

  • Caja Huancayo and the French Development Agency signed the agreement in early October with a seven-year bullet repayment structure.
  • Resources will prioritize SME climate transition projects, including energy efficiency and renewable energy investments.
  • The program targets roughly 5,700 beneficiaries over the term, with at least 30% participation by women.
  • The subordinated instrument strengthens Caja Huancayo’s capital base to expand responsible credit and deepen financial inclusion in underserved areas.
  • AFD frames the operation as part of its regional strategy to support Peru’s microfinance sector in social inclusion and climate transition.