Lima, Peru, June 12, 2014—
IFC, a member of the World Bank Group, will lend US$18 million (S./ 50 million nuevos soles) to Financiera Confianza, a microfinance lender owned by Spain’s BBVA Microfinance Foundation (FMBBVA), to help it expand its operations in rural areas and among low-income communities in Peru.
The new funds will help Financiera Confianza to boost its activities in Peru, where it currently serves about 500,000 low-income entrepreneurs. Financiera Confianza has a network of about 150 branches and correspondent offices, which are largely located in rural areas and in urban outskirts.
The new financing also reinforces IFC’s support for Financiera Confianza, which has optimal indicators in its loan portfolio. IFC, which is a shareholder in Financiera Confianza, already provided US$4.4 million in 2011 and US$12.4 since 2009 when the lending institution was known as Caja Nuestra Gente.
The investment also consolidates the strategic partnership between IFC and the BBVA Microfinance Foundation with the goal of strengthening microfinance institutions in Latin America. BBVA Microfinance Foundation is one of the key players in the microfinance sector in the region, offering a wide range of financial services to low-income entrepreneurs generating sustainable social and economic development.
As part of this alliance between IFC and BBVA Microfinance Foundation, signed in 2008, IFC has supported Bancamia, in Colombia, and Banco Adopem, in Dominican Republic, which are part of BBVA Microfinance Foundation.
Martin Naranjo, general manager of Financiera Confianza, said that “IFC’s continued support allows us to bolster our expansion in Peru, expanding our services for our current clients and supporting new entrepreneurs who don’t have access to the conventional financial system.”
The development of the microfinance sector has been a priority for IFC in Peru as part of its commitment to expand the presence of the financial sector in rural areas. “This loan is an example of our efforts to increase access to finance for small entrepreneurs in Peru,” said Irene Arias, IFC’s director for Latin America and the Caribbean.
Financiera Confianza is the result of a merger in May 2013 between Caja Nuestra Gente and Financiera Confianza, and is part of BBVA Microfinance Foundation. Since its creation in 2007, BBVA Microfinance Foundation has provided loans for more than US$6 billion to more than 4.4 million low-income clients for the development of their business activities.
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
www.ifc.org
About BBVA Microfinance Foundation
BBVA Microfinance Foundation has as its goal to propel the sustainable economic and social development of the most disadvantaged sectors of society through access to productive microfinance. It currently serves more than 1,5 million people through eight entities in Latin America: Banco de las Microfinanzas-Bancamía in Fondo Esperanza y Emprende Microfinanzas in Chile; Contigo Microfinanzas in Argentina; Corporación para las Microfinanzas in Puerto Rico; and Microserfin in Panamá.
