MICROCAPITAL BRIEF: OPIC Loans $100m to Grupo Lafise for Housing, Consumer, SME Lending in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama

The Overseas Private Investment Corporation (OPIC), an agency of the US government that seeks to facilitate investment by US-based firms in developing countries, recently loaned USD 100 million to the Panama-based Grupo Lafise, whose holdings provide retail banking, investment banking, export financing, insurance and asset management services in 10 countries in Latin America. The proceeds from the loan will be used to expand lending for housing, consumption and small and medium-sized enterprises (SMEs) in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. At least USD 25 million of the total is to be directed to women borrowers, and one third of the total is targeted to El Salvador, Guatemala and Honduras under OPIC’s Northern Triangle Initiative, which is intended to promote economic growth and job creation in these three countries.

Grupo Lafise, which was founded in 1985, reported total assets of USD 4 billion, outstanding loans of USD 2.3 billion and customer deposits of USD 231 million as of December 2017. Its 2017 pre-tax earnings totaled USD 73 million.

Established in 1971, OPIC is an agency of the US government whose function is to support investing by US-based firms in emerging economies. OPIC provides loans, grants, political-risk insurance and advisory services to US-based private equity funds; local financial institutions; and projects in the healthcare, energy, technology and education sectors. Its work has reached 160 countries since its inception. During 2017, the organization originated USD 3.8 billion in new commitments, mobilizing total capital of USD 6.8 billion and closing the year with 90 active projects.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Information provided directly to MicroCapital by OPIC

OPIC press release
https://www.opic.gov/press-releases/2018/opic-board-approves-18-billion-development-projects-across-four-continents

OPIC project detail
https://www.opic.gov/sites/default/files/files/9000052858.pdf

Grupo Lafise background
https://www.lafise.com/acerca-de-lafise/nuestra-historia

Grupo Lafise finances
https://www.lafise.com/Portals/0/Pdf/Informacion%20Financiera/Lafise%20Group%20-%20Panamá_%20Inc%20y%20Subsidiaria%202017.pdf?ver=2018-05-08-113447-643

MicroCapital Brief; March 19, 2018; Lafise Bancentro of Nicaragua Borrowing $75m for Mortgages, SMEs, Green Energy Projects from IFC, OPEC Fund for International Development (OFID)
https://www.microcapital.org/microcapital-brief-lafise-bancentro-nicaragua-borrowing-75m-mortgages-smes-green-energy-projects-ifc-opec-fund-international-development-ofid/

MicroCapital Brief; June 12, 2018; OPIC Loans $5m in Local Currency to Grameen Impact Investments India for SMEs
https://www.microcapital.org/microcapital-brief-opic-loans-5m-in-local-currency-to-grameen-impact-investments-india-for-smes/

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