IIC Approves A Subordinated Loan Of Up To 100,000,000 Nuevos Soles To Banco De Crédito Del Perú
11/28/2006Washington, D.C. - On November 28, 2006, the Inter-American Investment Corporation (IIC) approved a subordinated loan of 100,000,000 nuevos soles (approximately US$30 million) to Banco de Crédito del Perú (BCP) to support the bank's long-term growth. BCP will use the proceeds of the IIC loan to fund loans for low-cost housing, microenterprises, and small and medium-size enterprises.
The loan will help strengthen the bank's balance sheet, diversify its sources of funding, maintain its strong liquidity position, and enhance its capital. Among BCP's main strategies is increasing its portfolio with microloans and loans to small and medium-size Peruvian companies. At present, only 29 percent of Peru's more than three million micro and small enterprises work with the formal banking sector.
The IIC is setting up a bond issue program in nuevos soles to fund the operation. The first placement will have a financial structure that coincides with the loan to Banco de Crédito del Perú. The operation will consist of obtaining funds from the local capital market for lending to a local financial institution seeking to increase its participation in the small and medium-size enterprise segment. Such quasi-equity instruments in local currency are not currently available in Peru.
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. 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.
Contact: Rita Bettiol (in Washington D.C.)
Telephone: (202) 623-3913