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Lima, Peru, October 9, 2012
—IFC, a member of the World Bank Group, signed a $75 million loan agreement with BBVA Continental, the second-largest bank in Peru, to expand renewable energy and mortgage financing in the country. IFC’s support will help mitigate climate change, create high-quality jobs, and reduce the country’s housing deficit.
BBVA Continental will dedicate $30 million to finance small hydropower projects with installed capacity up to 20 megawatts. The remaining $45 million will be used to expand the bank’s mortgage portfolio.
“IFC’s financing will allow us to continue providing access to housing finance in Peru, and highlights our interest in investments that promote sustainability,” said Eduardo Torres Llosa, BBVA Continental’s Chief Executive Officer. “IFC’s involvement will also support our innovative approach to developing products that effectively tackle social and environmental needs in Peru.”
IFC’s loan will enable Continental to finance a pipeline of hydro projects to help the country meet its annual growth in energy demand and enhance its energy independence and reliability, crucial for the country’s sustainable growth.
IFC’s loan will also help Continental provide long-term mortgages to address the limited availability of mortgage lending in Peru and help meet the country’s housing deficit. It will also stimulate demand for labor, materials, and supplies for residential construction.
“Increasing access to housing finance and supporting the development of small hydropower projects are key priorities for IFC,” said James Scriven, IFC Director for Global Financial Markets. “This project offers IFC a vehicle to support these priorities by leveraging BBVA Continental’s capacity, environmental and social best practices, and network in Peru.”
The financing is consistent with IFC’s strategy in Peru to foster sustainable economic growth, reduce poverty and inequality, and provide access to finance for small and medium enterprises and low- and middle-income households.
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
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About BBVA Continental
BBVA Continental is the second-largest bank in Peru, with more than $15.6 billion in assets and a strong distribution network with over 265 branches, 946 ATMs, and 2,175 express agents. The Bank is active in corporate, retail, and SME lending. For more information, visit
http://www.bbvabancocontinental.com/
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