Los Heroes CL 0  0  0  0  0  0  0  0  0.0000       The proposed project (the Project) consists of   an up to   US$50 million   facility   to be committed in two tranches  , in unidades de fomento (UF, Chilean inflation-indexed currency) or Chilean Pesos equivalent to   Caja de Compensacion de Asignacion Familiar Los Heroes   (Caja Los Heroes, Los Heroes or the Company),   to   support the Company's social credit lending program   focused on low-income individuals   underserved by   the   traditional financial system in   Chile.     Founded in 1955, Caja Los Heroes is a non-profit organization. It is the third largest Caja de Compensacion in Chile with 15% market share   and   serving nearly 1 million members. Headquartered in Santiago, Los Heroes has the largest branch network in the Cajas industry across the 15 Chilean regions. Leveraging on this structure, Caja Los Heroes has 3 main pillars: (i) transactional business: distributing several social security benefits for the Chilean government and as required by law; (ii) social financial products: fostering financial inclusion in   Chile by offering affordable financial products to mainly underserved segments of the population (low income workers and retirees); and (iii) additional social benefits: providing social benefits to their members with a focus on health and wellbeing but also education, entertainment and social initiatives. Summary:  The most significant, expected project-level impact is derived from the increase in access to finance to low income population. Beyond the project, the main source of expected market impact is derived from market enabling foreign investors funding Cajas' business  and replication effect, which in this case, promote inclusiveness and market resilience.
    
Project Impact Assessment:  The project-level impacts  are composed of the following:   Generate a demonstration effect for both the Company to improve its risk profile and for the Chilean Cajas sector as a whole, enhancing investors' confidence in the Cajas sector.  Enhance access to finance for low-income individuals in Chile, currently underserved by the country's traditional financial system. Caja Los Heroes has nearly 1 million affiliates, and 77% of the Company's loans are granted to debtors with monthly income under US$613.
    
Market Impact Assessment:  IFC anticipates that the project will enable the development of systemic changes to existing market that will deliver sustainable development impact by allowing foreign investors capital to fund Caja's social business. In particular:
    Inclusiveness -  Through a replication effect, IFC anticipates that the project will result in increased access to products and services for underserved groups through the support of Cajas' social credit and benefits program.
   Market Resilience -  Through the market enabling effect of - by the first time - obtaining local regulator permission for a foreign investor to invest and fund Cajas' social credit portfolios, IFC anticipates the project will result in lasting systemic improvements that will help the Cajas market withstand shocks by diversifying sources of funding and lowering the risk profile of the Cajas' sector.