MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Provide $4.6m Equity Investment and $9m Loan to Caja Nuestra Gente of Peru

International Finance Corporation (IFC), the private investment-arm of the World Bank Group, recently announced it will make an equity investment of USD 4.6 million and a medium-term loan of USD 9 million in Caja Nuestra Gente, a microfinance institution (MFI) in Peru owned by Spain’s BBVA Microfinance Foundation (FMBBVA). These transactions will be directed to expand microfinance in rural areas and among low-income urban communities and is expected to help Caja Nuestra Gente double its number of microenterprise loans in Peru over the next five years.

Paolo Martelli, IFC Director for Latin America and the Caribbean, said, “This new IFC investment in Caja Nuestra Gente builds on our strategic alliance with BBVA Microfinance Foundation to promote joint investments in the Foundation’s various Latin American institutions. We look forward to continue helping to expand microfinance services in Peru and creating opportunities for the least advantaged social sectors.” The investments follow IFC’s USD 7.4 million equity investment in 2009 for Caja Nuestra Gente’s expansion.

Caja Nuestra Gente serves approximately 326,000 clients through its 116 offices and is reportedly in the process of merging with Financiera Confianza, an MFI founded in Peru of which it holds a 64 percent stake. The MFI was created in 2008 as a result of merger of three MFIs in Peru: Crear Tacna, a partner of a US-based nonprofit organization Global Partnerships, Caja Nor and Caja Sur. Caja Nuestra Gente’s portfolio size is undisclosed.

By Carol Kim, Research Associate

About International Finance Corporation (IFC): IFC is a member of the World Bank Group that 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.

About Fundación BBVA Microfinanzas (FMBBVA or BBVA Microfinance Foundation):
The Fundación BBVA Microfinanzas (BBVA Microfinance Foundation) is a nonprofit business that was created in May 2007 as an outgrowth of the corporate responsibility policy at BBVA, a Spanish bank reporting 47 million customers worldwide as of September 2010. The goal of the foundation is to boost the economic and social development of disadvantaged people through access to productive microfinance.

About Financiera Confianza: Financiera Confianza a microfinance institution that was founded in Peru in 1992 as the Entrepreneurial Development Program by the Inter-American Development Bank (IADB) of the US and the nongovernmental organization (NGO) Servicios Educativos Promoción y Apoyo Rural (SEPAR) of Peru. In 1998, the program grew to become an independent financial institution and was renamed Edpyme Confianza. In 2009, it again changed its name to Financiera Confianza. It now offers microloans to rural and urban enterprises. As of March 31, 2011, Financiera Confianza reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 178 million in assets, a gross loan portfolio of USD 140 million, 80,000 active borrowers, return on assets (ROA) of 2.84 percent and return on equity (ROE) of 19.94 percent.

About Global Partnerships (GP): Global Partnerships is a microfinance institution that was founded in Peru in 1992 as the Entrepreneurial Development Program by the Inter-American Development Bank (IADB) of the US and the nongovernmental organization (NGO) Servicios Educativos Promoción y Apoyo Rural (SEPAR) of Peru. In 1998, the program grew to become an independent financial institution and was renamed Edpyme Confianza. In 2009, it again changed its name to Financiera Confianza. It now offers microloans to rural and urban enterprises. As of March 31, 2011, Financiera Confianza reports to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, USD 178 million in assets, a gross loan portfolio of USD 140 million, 80,000 active borrowers, return on assets (ROA) of 2.84 percent and return on equity (ROE) of 19.94 percent.

Sources and Additional Resources:

International Finance Corporation (IFC) Press Release: “IFC promotes microfinance in Peru with new investment of U.S. $ 4.6 million in Caja Nuestra Gente”, July 2011, http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/BC0128560129142E852578D4004EEB28?OpenDocument

MicroCapital.org: “MICROCAPITAL BRIEF: Peruvian Microfinance Institution (MFI) Mibanco Seeks $60m Syndicated Loan from International Finance Corporation (IFC), Grupo ACP Issues $85m in Bonds”, April 5, 2011, 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.org: “MICROCAPITAL BRIEF: BBVA Microfinance Foundation’s Corporación para las Microfinanzas-Puerto Rico Appoints Annette M Montolo as President”, February 11, 2011, https://www.microcapital.org/microcapital-brief-bbva-microfinance-foundation’s-corporacion-para-las-microfinanzas-puerto-rico-appoints-annette-m-montolo-as-president/

MicroCapital.org: “MICROCAPITAL STORY: The International Finance Corporation (IFC) to invest $ 7.4 million (16.4 percent equity stake) in Microfinance Institution Caja Nuestra Gente of Peru”, May 20, 2009, https://www.microcapital.org/microcapital-story-the-international-finance-corporation-ifc-to-invest-74-million-164-percent-equity-stake-in-microfiannce-institution-caja-nuestra-gente-of-peru/

MicroCapital’s Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital’s Universe Profile: Fundación BBVA Microfinanzas (FMBBVA or BBVA Microfinance Foundation), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundación+BBVA+Microfinanzas

MicroCapital’s Universe Profile: Financiera Confianza, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Confianza

MicroCapital’s Universe Profile: Global Partnerships, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Partnerships

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