Bogota, Colombia. September 26
th
, 2019.
The International Finance Corporation (IFC), a member of the World Bank Group, announced its participation as an anchor investor in a COP$100,000 million (approximately US$31.4 million) transaction of ordinary bonds issued by Credifinanciera, a Colombian commercial financing company, in Colombia’s alternative bonds market “Segundo Mercado”.
The resources obtained in the transaction will be allocated to microcredits and to the growth of the portfolio of payroll discount credits of Credifinanciera among pensioners. The bonds are expected to have a tenor of 5 years with a 2 years grace period.
Elizabeth Martínez de Marcano, manager for the Andean Region of IFC, said: “This issuance of Credifinanciera bonds not only helps strengthen the capital market and boost bond issues in the Segundo Mercado, but also provide resources to sectors typically underfunded by traditional banks, such as pensioners and microenterprises. We are convinced that this operation will boost financial inclusion in Colombia.”
"This transaction confirms our financial strength, the resources obtained will allow us to leverage our commitment to banking in Colombia. We will support more microentrepreneurs and pensioners through microcredit and payroll loans," said Carlos Iván Vargas Perdomo, president of Credifinanciera.
Colombia's Segundo Mercado is an alternative for the issuance of securities of small and medium-sized companies that normally could not participate in the main market, and where the securities offered can only be acquired by qualified investors, according to local regulations.
Nearly 3,000 million people in emerging countries lack access to formal financial services that could help them increase their income and improve their lives. IFC promotes financial products, technological development and business practices to help financial institutions reach vulnerable sectors more efficiently and profitably.
About IFC:
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
About Credifinanciera:
Established in 2011, Credifinanciera has presence in more than 890 municipalities and the main cities of Colombia through credit products (microcredit) and investment (CDT). As of June 30, 2019, Credifinanciera has a base of 87,767 clients (22% microentrepreneurs; 53% pensioners; 6% public sector employees, teachers and members of the military forces; 8% private sector employees and 11% CDT customers). At the same date, credit disbursements have shown a 37% growth over the previous year, resulting in a loan portfolio of $ 737,812 million Colombian pesos, with an annual increase of 34%. In the last three years, Credifinanciera's portfolio has increased on average 25%, exceeding four times the growth of the financial sector (6%), with a particular focus on pensioners, who currently represent 67% of the total purse. Credifinanciera has a local “A” rating (positive outlook) granted by BRC Standard & Poor’s for long-term debt.
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