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Summary of proposed guarantee

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.


Project name
AFP Crecer S.A.
Project ID
Fiscal year
Guarantee holder
AFP Protección S.A.
Investor country
Host country
El Salvador
Environmental category
Financial Services
Date SPG disclosed
April 09, 2014
Project Board date
June 13, 2014
Gross exposure
 $103.0 million
Project type

Project description

This summary covers an investment by Administradora de Fondos de Pensiones y Cesantias Protección S.A. (AFP Protección S.A.) of Colombia in AFP Crecer S.A. in El Salvador. The investor has applied for a MIGA guarantee of $103 million for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves MIGA’s coverage of AFP Protección’s acquisition cost of a pension management fund in El Salvador, AFP Crecer S.A. AFP Crecer S.A. is one of two pension fund managers of the Salvadoran Pension Savings System, charged with administering its affiliates’ compulsory pension contributions and underlying funds for and on behalf of the Republic of El Salvador. The company was acquired by AFP Protección in November of 2011.

Environmental Categorization

The project is a category FI-3 under MIGA’s Policy on Environmental and Social Sustainability because the existing and expected future portfolio includes financial exposure to business activities that predominately have minimal or no adverse environmental and social impacts.

Development Impact

Well-managed and funded pension funds can play a major role in securing the quality of life of aging populations. In addition, pension funds also play a positive role in enhancing the development of national capital markets, including increasing the availability of long-term funds; reducing the cost of capital; encouraging product and financial market innovation; providing alternative sources of financing; and improving corporate governance.

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