MICROCAPITAL BRIEF: Lafise Bancentro of Nicaragua Borrowing $75m for Mortgages, SMEs, Green Energy Projects from IFC, OPEC Fund for International Development (OFID)

Lafise Bancentro, the Nicaraguan member of Panama-based Grupo Lafise, recently agreed to accept a loan package arranged by the World Bank Group’s International Finance Corporation (IFC) to fund housing loans as well as loans to small and medium-sized enterprises (SMEs) for purposes including reducing energy usage or accessing clean energy sources. The package includes USD 50 million from IFC and USD 25 million from Austria-based OPEC Fund for International Development (OFID), an affiliate of the 14-member Organization of Petroleum Exporting Countries (OPEC). Of the total package, USD 42.5 million is senior debt with a term of seven years, and the remainder is subordinated debt with a term of 10 years. IFC is also anticipating arranging an additional USD 40 million in funding for Lafise Bancentro from various lenders by the end of April.

Lafise Bancentro was founded in 1991 and has 2,800 employees as of 2018. Grupo Lafise offers banking, insurance, investment and other services in 11 countries in the Americas. For 2016, it reports net income of USD 46 million on total assets of USD 3.9 billion.

Founded in 1976 as the OPEC Special Fund, OFID seeks “to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world.” As of 2016, it reports total assets of USD 7.2 billion.

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. IFC has 184 member countries and total assets of USD 95 billion as of September 2017.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) the International Finance Corporation (IFC); (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed funds totaling USD 44 billion.

Sources and Additional Resources:

IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/4ED6FF99E4A0984E85258250005F08E6?OpenDocument

Grupo Lafise financials
http://www.lafise.com/informacion-financiera

OFID financials
http://www.ofid.org/PUBLICATIONS/FinancialStatements

IFC budget for fiscal year 2018
http://www.ifc.org/wps/wcm/connect/cbd63894-c62a-453c-bfc8-92b8f8a3155f/IFC+FY18+Q1+MDA+and+FS_FINAL.pdf?MOD=AJPERES

World Bank Group
http://worldbankgroup.org/

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