IIC Approves A US$6 Million Regional Equity Investment In Proba, L.P. Central American Banking Growth Fund


WASHINGTON, D.C. - On November 20, 2002, the Inter-American Investment Corporation (IIC) approved a US$6 million equity investment in ProBa, L.P., Central American Banking Growth Fund, a private equity fund targeting the rapidly growing financial sector in Central America and Panama. The Fund has a target capitalization of $60 million and is sponsored by Darby Overseas Investment Ltd., a United States investment firm specializing in private equity and asset management in Latin America; The Netherlands Development Bank; and the Central American Bank for Economic Integration. Darby, in addition to cosponsoring this fund, will serve as investment advisor to the fund with responsibilities to manage the fund. It has an experienced Latin American private equity team in Washington D.C. with professionals based in the region to manage the fund.

The IIC will be playing an active role in the governance of the fund to support fundraising activities, objectives, strategy, and investment criteria of the fund.

The fund aims to make six to eight investments in the region with committed partners that offer opportunities for growth and value creation within the regional financial systems. It will implement a well-structured strategy to reach banking and nonbanking financial institutions in the region that need capital to grow and create solid franchises through improved efficiencies and increased market shares. The objective is to target financial institutions that have strong management teams; present an attractive platform for development through internal business expansion, mergers and acquisitions; take advantage of sector and regional consolidation; and provide attractive and potentially achievable exit alternatives through sales to strategic buyers or public offerings.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org