Mibanco, a Peruvian microfinance institution (MFI), is seeking a syndicated loan in an amount equivalent to USD 60 million from the International Finance Corporation (IFC), the private-investment arm of the World Bank Group. The transaction would be funded in an undisclosed combination of local and foreign currency [2].
Mibanco’s effort to procure funding comes at a time when the Peruvian microfinance sector is reportedly becoming increasingly competitive [3]. Meanwhile, Grupo ACP, Mibanco’s parent company, recently listed 10-year bonds totaling USD 85 million on the Luxembourg Stock Exchange. The funding raised through the bond issue would go toward expanding Grupo ACP’s MFIs, namely Forjadores in Mexico and the recently-launched CEAPE-MA in Brazil, as well as its operations in Peru, including microinsurance provider Protecta and real estate and infrastructure company Vivencia. Grupo ACP reported in its 2009 financial statements total assets of PEN 3.09 billion (USD 1.1 billion). In December 2010, Mibanco reported to the Microfinance Information Exchange (MIX), the nonprofit US-based data provider, total assets of USD 1.59 billion, a gross loan portfolio of USD 1.3 billion, 414,000 borrowers, a return on assets (ROA) of 7.28 percent and a return on equity of 84 percent.
By Jacqueline Foelster, Research Associate
About Banco de la Microempresa (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 lending 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 with interest rates from 25 percent up to 50 percent per year. As of December 2010, Mibanco reported to the Microfinance Information Exchange (MIX), the nonprofit US-based data provider, total assets of USD 1.59 billion, a gross loan portfolio of USD 1.3 billion, 414,200 active borrowers, a return on assets of 7.28 percent and a return on equity of 84.12 percent.
About Grupo ACP: Established in 1969 as Accion Comunitaria del Peru (ACP), Grupo ACP is a holding company with the mission of advancing social inclusion for individuals at the bottom of the economic pyramid. Grupo ACP owns majority stakes in 17 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in nine Latin American countries. Its companies include Mibanco, a microfinance institution (MFI) based in Peru, and Forjadores, an MFI based in Mexico. Grupo ACP reported in its 2009 financial statements total assets of PEN 3.09 billion (USD 1.1 billion).
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. In fiscal year 2009, IFC’s new investments totaled USD 14.5 billion. As of June 30, 2010, IFC reported net income of USD 1.75 billion, total assets of USD 61 billion, return on assets of 3.1 percent, total investment mobilization of USD 18.4 billion and 528 projects.
Sources and Additional Resources:
[1] Business News Americas, “Grupo ACP issues US$85mn in bonds as Mibanco seeks IFC syndicate loan”, http://www.bnamericas.com/news/banking/grupo-acp-issues-us85mn-in-bonds-as-mibanco-seeks-ifc-syndicated-loan
[2] International Finance Corporation, “Summary of Proposed Investment”, http://www.ifc.org/ifcext/spiwebsite1.nsf/0/BBDB1B5A7C6732308525785D0051D361
[3] MicroCapital.org Brief, December 2, 2010, “As Microfinance in Peru Continues to Grow, BBVA Continental to Acquire Financiera Confianza”, https://www.microcapital.org/microcapital-brief-as-microfinance-in-peru-continues-to-grow-bbva-continental-to-acquire-financiera-confianza/
MicroCapital.org Brief, December 2, 2010, “As Microfinance in Peru Continues to Grow, BBVA Continental to Acquire Financiera Confianza”, https://www.microcapital.org/microcapital-brief-as-microfinance-in-peru-continues-to-grow-bbva-continental-to-acquire-financiera-confianza/
MicroCapital.org Brief, August 13, 2010, “Peruvian Microfinance Institution (MFI) Mibanco Receives $45m Syndicated Loan from Inter-American Development (IDB), BlueOrchard, Oikocredit, the Calvert Foundation and Societe de Promotion et de Participation pour la Cooperation Economique (PROPARCO), https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-receives-45m-syndicated-loan-from-inter-american-development-bank-idb-blueorchard-oikocredit-the-calvert-foundation-and-societ/
MicroCapital Universe Profile: Banco de la Microempresa (Mibanco), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mibanco
MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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