The International Finance Corporation (IFC), the private investment arm of the World Bank Group, and BBVA Continental, a commercial bank in Lima, Peru, recently entered into a USD 75 million loan agreement to boost renewable energy and mortgage financing in the country. It is intended that this intervention will assist in creation of high quality jobs, reduce issues related to climate change and decrease the country’s housing deficit [1].
USD 30 million of the project sum will be allocated by BBVA Continental to finance small hydropower projects, while USD 45 million will be used to boost the mortgage portfolio of the bank. IFC’s financing is expected to address the issue of limited availability of mortgage lending in Peru and also accelerate the demand for labor and supplies for residential construction. Restating the commitment of IFC to increased access to housing finance, IFC Director for Financial Markets, James Scriven reportedly noted “This project offers IFC a vehicle to support these priorities by leveraging BBVA Continental’s capacity, environmental and social best practices, and network in Peru.”
BBVA Continental bank had total assets of PEN 47.3 million (USD 17.7million) as of June, 2012.
By Chioma Okwudiafor, Research Associate
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the World Bank group 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, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
About BBVA Continental
BBVA Continental is a commercial bank with headquarters in Lima, Peru. Its total assets stood at PEN 47.3 million (USD 17.7million) as at June, 2012 and it has a distribution network of 265 branches, 946 Automated Teller Machines, and 2,175 agents. The bank is active in corporate, retail and Small and Medium Enterprise lending.
Sources and Additional Resources
[1] IFC Press Release: IFC invests $ 75 million in BBVA Continental to Support Renewable Energy and Housing in Peru http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/ 405D441DB0B5139F85257A92005E7598
MicroCapital Universe Profile: International Finance Corporation https://www.microcapital.org/microfinanceuniverse/tiki-index.php page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: BBVA Continental
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BBVA+Continental
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