IIC Invests 330 Million Mexican Pesos In Banco Compartamos S.A. de C.V. To Enhance Compartamos’ Microcredit Portfolio
10/01/2007More than 95% of Banco Compartamos’ clients are women living in rural areas of Mexico
Washington, D.C. - On October 2, 2007, the Inter-American Investment Corporation (IIC) approved an investment of 330 million Mexican pesos (equivalent to approximately US$30 million) in Banco Compartamos S.A. de C.V. The transaction will be by means of a time deposit certificate.
Compartamos began operating in 1991. In 2006, seeking to increase its market share in Mexico, it was authorized by Mexico’s Comisión Nacional Bancaria y de Valores to become a multipurpose bank. Compartamos has more than 616,000 clients. Its 187 branches in all 32 Mexican states enable it to meet the needs of Mexico’s underprivileged, whose access to financial services is limited. The average loan made by Compartamos is equivalent to US$446; the average term is sixteen weeks.
This IIC investment will enable Compartamos to continue diversifying its sources of funding and provide it with medium-term funding that will allow Compartamos to increase the amount and extend the term of its financing operations.
According to Carlos Roa, IIC Financial Institutions and Structured Finance Coordinator, "This project is in line with four IIC priorities: supporting financial intermediaries that target small and medium-size enterprises, in this case, microenterprises; providing medium and long-term local-currency financing whenever possible financially, operationally, and from a credit standpoint; supporting successful operations carried out by the Inter-American Development Bank (IDB) Group’s Multilateral Investment Fund in which the IIC has participated directly or indirectly; and encouraging foreign investment in local capital markets."
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/Rodrigo Navas
Telephone: (202) 623-3955