IIC Investment To Further The Deepening Of The Region’S Private Sector By Providing Risk Capital And Innovative Products
11/26/2007US$5 million IIC investment in Darby-ProBanco II, L.P. will benefit 20,000 to 40,000 SMEs in Central America, Panama, Dominican Republic, Mexico, and Colombia
Washington, D.C. - On November 27, 2007, the Inter-American Investment Corporation (IIC) approved an equity investment in private equity funds managed by Darby. Darby is readying the launch of PROBANCO II, a leveraged private equity fund specializing in the financial sector in Central America, including Panama and the Dominican Republic, as well as Mexico and Colombia. The IIC participation is estimated to represent 11% of the fund’s equity.
This is the IIC’s second investment in Darby. It is in line with the IIC’s goal to finance equity funds that have a sound investment strategy and an active project pipeline. Growth equity investments will be made in second-tier banks, microfinance companies, and other non-banking financial institutions such as insurance, consumer lending, and payment processing companies. Niche market players such as Sofoles, mortgage securitization, and fund distribution companies will also benefit from the transaction.
According to Carlos Roa, IIC Financial Institutions and Structured Finance Coordinator, "This investment is expected to contribute to the development of the private sector by capitalizing on the general improvements in financial regulations, consolidation, and competition that have taken place. This new situation requires equity injections in financial institutions and is creating market opportunities." The fund is expected to invest in companies that seek to capitalize on these opportunities.
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: Carlos Roa/Javier Hernández-Fuentes
Telephone: (202) 623-3955