The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has recently arranged a syndicated debt deal that will mobilize USD 40 million in long-term financing from IFC and other unnamed participants to support Peruvian microfinance financial institution Banco de la Microempresa SA (Mibanco) in increasing access to financial services for micro-, small and medium-sized enterprises (MSMEs) and low-income households in Peru.
Mibanco CEO Jose Castillo said, “IFC’s renewed support will allow us to increase banking penetration, reducing gaps in formal financing for local microenterprises, many of which are managed by women.”
Dolika Banda, IFC’s Director for Financial Markets in Latin America and Africa, said: “This new financing shows IFC’s continuing work to improve access to finance to the lower-income segments of the population in Peru. Our long-term partnership with Mibanco and its sponsors aims to expand services that will support individual entrepreneurship initiatives in the country and more equitable growth.”
As of June 30, 2011, Mibanco reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 1.75 billion, a gross loan portfolio of USD 1.41 billion, return on assets (ROA) of 1.23 percent, return on equity (ROE) of 14.4 percent and 420,000 active borrowers. Mibanco also reported total deposits of USD 1.27 billion and 263,000 depositors.
By Kristha Abores, Research Associate
About Mibanco:
Mibanco, created in 1998, is a private Peruvian bank that aims to assist the development of micro- and small enterprises (MSEs). Its strategy is to target markets “where demand for micro-credit is highest and supply weakest”, mainly focusing on the Lima and Callao area. Mibanco offers both credit and savings products and employs both individual and solidarity group lending methodologies. Loans are offered for working capital and fixed asset purchases. Loan sizes range from the equivalent of USD 100 to USD 100,000, with loan terms of 3 to 60 months and interest rates ranging from 25 percent to 50 percent per year. As of June 30, 2011, Mibanco reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 1.75 billion, a gross loan portfolio of USD 1.41 billion, return on assets (ROA) of 1.23 percent, return on equity (ROE) of 14.4 percent and 420,000 active borrowers. Mibanco also reported total deposits of USD 1.27 billion and 263,000 depositors.
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries that drive its policies and approve disbursements. As of June 30, 2010, IFC reports net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent and total investment mobilization of USD 18.4 billion to 528 projects.
Sources and Additional Resources:
[1] IFC: “IFC Mobilizes $40 Million for Mibanco to Support Rural Populations, Women in Peru”, http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/BC18BE7D2C798C528525794400531CA2
MicroCapital.org article, July 25, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Provide $4.6m Equity Investment and $9m Loan to Caja Nuestra Gente of Peru,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-provide-4-6m-equity-investment-and-9m-loan-to-caja-nuestra-gente-of-peru/
MicroCapital.org article, March 3, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Advise Amerika Financiera on Expanding Range of Financial Services to Peruvian Small and Medium-Sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-advise-amerika-financiera-on-expanding-range-of-financial-services-to-peruvian-small-and-medium-sized-enterprises-smes/
MicroCapital.org article, April 5, 2011, “MICROCAPITAL BRIEF: Peruvian Microfinance Institution (MFI) Mibanco Seeks $60m Syndicated Loan from International Finance Corporation (IFC), Grupo ACP Issues $85m in Bonds,” https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-seeks-60m-syndicated-loan-from-international-finance-corporation-ifc-grupo-acp-issues-85m-in-bonds/
MicroCapital Universe Profile: Mibanco Banco de la Microempresa S.A., https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mibanco
MicroCapital Universe Profile: International Finance Corporation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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