IIC Approves 15 Million Nuevos Soles In Financing For Financiera Edyficar, S.A. In Peru
07/15/2008The loan proceeds will benefit at least 500 low-revenue microenterprises
Washington, D.C. - On July 15, 2008, the Inter-American Investment Corporation (IIC) approved a loan of up to 15 million nuevos soles to Edyficar S.A., a financial institution established by CARE Perú. The latter is a private, international not-for-profit NGO focused on development; it is a subsidiary of CARE International. Edyficar’s objective is twofold: social and financial. It seeks to increase micro and small enterprises’ access to financing while becoming a profitable financial institution that is well-positioned in the market. In 2007, Edyficar was the first nonbank microfinance company to successfully access the capital market.
Edyficar’s target market is different from that of the large banks in the financial system because it focuses on the lower-revenue segment. It ranks second among the finance companies that are bringing the most people into the formal banking system in Peru. Edyficar accounts for 14% of the new clients coming into Peru’s financial system.
Edyficar has fifty-eight branches, distributed throughout the departments of Lima, Ancash, Arequipa, Ayacucho, Lambayeque, Cajamarca, La Libertad, Piura, and Cusco. Its main office is in the heart of Peru’s financial district, San Isidro de Lima.
The IIC loan proceeds will be used to provide financing to microenterprises with less than US$100,000 in assets or yearly sales. The subloans will be for up to US$10,000. This operation is expected to contribute to the development of the domestic financial market because 100% of the proceeds will be used for onlending to micro and small enterprises owned by lower-income individuals.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2007, the IIC reached US$1.2 billion in assets and approved 62 transactions channeling US$470 million to SMEs in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
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