Lima, Peru - June 20, 2013
— IFC, a member of the World Bank Group, today announced a $50 million equity investment, which will help BanBif double the number of small and medium enterprises (SMEs) it serves in Peru by 2017.
Although Peru’s economy has grown at a steady pace during the last few years, access to finance for SMEs is still limited and continues to constrain their growth. This transaction consolidates IFC and BanBif’s partnership and will help increase banking penetration and competition in Peru. It also boosts financing for underserved sectors, such as SMEs, which are key drivers of job creation.
BanBif currently has an SME loan portfolio of close to US$560 million, serving more than 32,000 SMEs in 15 regions of the country.
“IFC support has been important for us to deploy our growth strategy in Peru, which is focused on expanding our operations into the SME segment,” said Juan Ignacio de la Vega, BanBif’s CEO. “Going forward, the current capital injection will enable BanBif to keep the growing in this segment.”
Giri Jadeja, IFC Manager for Financial Markets in Latin America and the Caribbean, said, “This investment in BanBif will help promote lending to SMEs in Peru, supporting entrepreneurship, job creation and boosting shared prosperity. This consolidates the relationship IFC has built with BanBif since 2007, and deepens the type of financial services offered in the country."
IFC’s financing is consistent with the World Bank Group’s strategy in Peru to expand opportunities to increase economic growth and competitiveness, reduce poverty and inequality, and enhance the level of financial services being offered.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
About BanBif
BanBif is the sixth largest commercial bank in Peru with over US$2.2 billion in assets and US$164 million in equity. The Bank, which started out with a focus on foreign trade and corporate banking, has recognized the importance of the SME segment and since 2007 is expanding into SME and consumer businesses.
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