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Washington D.C. , April 26, 2007
—IFC, the private sector arm of the World Bank Group, announced today that its Board of Directors has approved a third round of financing for microfinance pioneer Banco de la Microempresa S.A. (Mibanco) to help expand quality financial services to microenterprises in Peru. The $7 million subordinated loan, which will count as Tier 2 capital, reinforces the long-term relationship between the two institutions, which began in 2001.
According to Rafael Llosa, Mibanco’s General Manager, “This loan will allow us to diversify our financing sources and help us grow our loan portfolio. It will also give us better leverage and greater flexibility for growth.”
Farida Khambata, IFC’s Vice President for Asia and Latin America, said, “One of the most pressing challenges for Peru is providing access to finance to the majority of people who rely on microenterprises for self-employment. Thus, IFC’s strategy for the country focuses on widening the sources and availability of financial services for small and microenterprises and low-income people. We look forward to working with Mibanco to address these important gaps in the banking sector.”
IFC’s initial investment in 2001 helped Mibanco expand its lending activities outside the Lima area. The five-year, $5 million loan marked the start of a growing and evolving relationship between the two institutions. As the company opened new branches, its funding needs increased, resulting in a second, $29 million loan from IFC in June 2006.
One of IFC’s strategic priorities in Peru and Latin America is to develop a sound and financially sustainable microfinance sector to expand access to finance to smaller businesses. We currently support 20 microfinance companies in eight countries, including Bolivia, Brazil, the Dominican Republic, El Salvador, Haiti, Nicaragua, Mexico, and Peru. As a whole, the companies provide credit and deposit services for 1.3 million entrepreneurs.
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
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About Mibanco
Mibanco is the largest, specialized microfinance institution in Peru, serving over 230,000 clients across the country. It has 74 offices nationwide, a staff of over 2,000 people, and a loan portfolio in excess of 1 billion nuevos soles. As of February 2007, it held a 13.7 percent share of the microfinance market. With loans starting at 300 nuevos soles, the bank has provided more than a million loans to small businesses and low-income people to date, many of whom had little or no prior access to formal credit institutions. For more information, please visit
www.mibanco.com.pe
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