IIC Grants A Loan Of Up To 23 Million Nuevos Soles To The Only Commercial Private Bank In Peru That Specializes In Microfinance
To fund the operation the IIC will issue bonds in nuevos soles in the Peruvian securities market
Washington, D.C. - On May 1, 2007, the Inter-American Investment Corporation (IIC) approved a loan of 23 million nuevos soles (equivalent to approximately US$7 million) to Mibanco, Banco de la Microempresa S.A. The loan will enable Mibanco to diversify its sources of funding and expand its local-currency lending to microenterprises and small enterprises in Peru.
This operation is part of the IIC's efforts to create financial products to meet the demand from entrepreneurs for products in local currency. According to Carlos Roa, IIC Financial Institutions and Structured Finance Coordinator, "Today only 29% of Peru’s microenterprises and small enterprises have access to financial services. With this operation we are making it possible for Mibanco to reach new geographic areas and customers who are currently underserved."
In order to fund the loan operation, the IIC registered a bond issue program for up to 250 million nuevos soles with Peru’s Comisión Nacional Supervisora de Empresas y Valores. The program is being structured with support from Citibank Perú. It will enable the IIC to obtain long-term funding at a competitive rate and thus offer local-currency financing to borrowers who operate in local currency, such as Mibanco.
The program will have a positive impact on the Peruvian capital market, which currently has high liquidity levels.
According to Rafael Llosa Barrios, Mibanco General Manager, "with the Corporation's loan, Mibanco will be able to provide financing to at least 320 micro- and small Peruvian enterprises and remain committed to strengthening these enterprises and bringing them into the formal banking system." Mibanco is the only commercial private bank in Peru that specializes in microfinance. The bank began operations in 1989 and currently has seventy-four branches located throughout Peru.
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 member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. As of December 31, 2006, the IIC has approved operations in Peru for more than US$20 million. For more information on the IIC's activities, visit its Web site at www.iic.int.
Contact: Carlos Roa/Rita Bettiol
Telephone: (202) 623-3955/(202) 623-3913