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Duoc
Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 25720
Company nameDUOC UC
Country
Chile
Sector1Colleges, Universities, and Professional Schools
Environmental categoryC
Department
StatusActive
Date SPI disclosedMay 8, 2007
Projected board dateJune 10, 2007
Previous EventsSigned: June 27, 2007
Approved: June 22, 2007
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
Fundacion Duoc (Duoc) is a higher education institution in Chile providing technical degrees and vocational training to a student body of approximately 40,000. Duoc sees a strong need to expand the financing options it offers to students, especially to those from lower income brackets who are not eligible for government sponsored programs.

IFC has been in discussions with Duoc and a Chilean bank (or the Bank), to jointly develop a new student loan program for Duoc (the Facility). Under the new program, loans would be made by the Bank to qualified Duoc students. The Bank would then administer and collect the loans in cooperation with Duoc. Duoc would provide a first loss reserve (First loss) for such a program in order to:

- reduce the risk of loss to the Bank and IFC, and
- help lower the interest rate being charged to its students. IFC would share the remaining risk of the Facility with the Bank.

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