Lima, Peru, June 30, 2014
— A fund managed by IFC Asset Management Company is investing $25 million in
Banco Interamericano de Finanzas, S.A. (BanBif), the fifth largest bank in Peru.
T
he $25 million subordinated loan will strengthen BanBif’s capital base and support the growth of a systemically important bank that has a strategic focus on small and medium enterprises (SMEs) and consumer finance
.
This is the seventh investment in the region for the IFC Capitalization Fund, a $3 billion fund that was made possible by commitments from IFC and Japan Bank for International Cooperation (JBIC). It is also the sixth project overall for IFC with BanBif, including an equity investment in 2013.
“This investment strengthens the long-standing partnership between IFC and BanBif as the bank continues to grow and improve access to finance in Peru
,
” said Marcos Brujis, Head of the IFC Capitalization Fund.
IFC’s relationship with BanBif dates back to 2007, when IFC invested its first subordinated loan in BanBif. Since then, IFC has extended a series of senior loans and trade lines for the bank, as well as an equity investment in 2013. The current subordinated debt instrument is expected to further strengthen the bank’s Tier 2 capital base and help to finance the bank’s continued plans for sustained growth
.
“This new facility is important to support our overall growth strategy, which focuses in the SME segment, and further strengthens our relationship with IFC, with whom we have a long-standing partnership,” said Juan Ignacio de la Vega, CEO of BanBif.
Peru became a member country of IFC in 1956, and IFC has invested a total of $3
.
1 billion in the country since then, including $1.1 billion in mobilization. IFC’s strategy in Peru aims to improve the investment climate and support key players in Peru’s private sector that can expand services and products to under-served sectors, like for example expanding access to finance for micro, small, and medium enterprises, as well as access to housing and education finance
.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. It manages $6.3 billion of capital across six investment funds.
For more information, visit
www.ifcamc.org
About the IFC Capitalization Fund
The IFC Capitalization Fund is a global equity and subordinated debt fund supported by commitments from IFC and JBIC. It aims to strengthen banks considered vital to the financial system of emerging markets.
About JBIC
JBIC is a policy-based financial institution wholly owned by the Japanese government, which has the objective of contributing to the sound development of Japan and the international economy and society, by conducting financial operation in the following four fields: Promoting the overseas development and securement of resources which are important for Japan; Maintaining and improving the international competitiveness of Japanese industries; Promoting the overseas business having the purpose of preserving the global environment, such as preventing global warming; Preventing disruptions to international financial order or taking appropriate measures with respect to damages caused by such disruption. For more information, visit
www.jbic.go.jp/en
.
