IFC invests CLP 23 billion in Copeval bond for farmer finance

The IFC invested CLP 23 billion in a securitized bond by Copeval, Chile's largest agricultural input distributor, to extend pre-harvest financing to over 50,000 farmers, 99% of them SMEs. The blended agri-finance model offers a template for Indian institutions structuring inclusive, climate-resilient lending for smallholders.

The International Finance Corporation invested CLP 23 billion in a securitized bond issued by Copeval, Chile's largest agricultural input distributor, the third such transaction between the two. The investment supports Copeval's working capital and extends pre-harvest financing to over 50,000 farmers, 99% of whom are classified as SMEs. Pre-harvest credit was previously absent in the Chilean market, where high transaction costs, insufficient collateral, and mismatched cash-flow cycles have excluded smallholders. The investment aligns with IFC's mandate to advance inclusive development in climate-exposed regions.

The transaction directly affects Chilean smallholder farmers, particularly SMEs, and Copeval, in which IFC holds a 16.8% equity stake. Copeval grew its farmer base more than 35% since 2014, from 37,000 to over 50,000 producers by 2025. The collaboration is poised to generate climate co-benefits by incentivising fertigation, drip irrigation, and energy-efficient technologies. A corporate gender and inclusion assessment was launched: despite women comprising over 42% of Chile's labor force, only 3.2% of employed women work in agriculture, highlighting the need for gender-sensitive financing.

Copeval should deploy the working capital to scale pre-harvest credit to its 50,000-plus farmers and pursue the gender and inclusion action plans to address institutional gaps, promote diversity, and elevate productivity. World Bank Group Country Manager Jean-Marc Arbogast tied access to finance to investment in sustainable technologies. Stakeholders should monitor how the securitization model and climate co-benefit incentives expand across Chile's agri-supply chain, and whether the gender assessment translates into measurable improvements in women's agricultural participation.

Key figure — IFC investment: CLP 23 billion supporting pre-harvest credit for over 50,000 farmers