IFC Mobilizes $40 Million for Mibanco to Support Rural Populations, Women in Peru
Lima, Peru - IFC, a member of the World Bank Group, today signed an agreement with Mibanco - Banco de la Microempresa S.A, to increase access to financial services for micro, small, and medium enterprises, low-income and rural populations, and women in Peru.
IFC will mobilize $40 million in long-term financing, 75 percent of which will be in local currency, allowing Mibanco to expand its MSME portfolio in the country. Mibanco, part of Grupo ACP Holding, is one of the benchmark institutions in the Latin American microfinance sector, which is at the forefront of promoting access to credit, savings, and insurance in Peru. With more than 630,000 clients, Mibanco is one of the fastest-growing players in the Peruvian microfinance market.
“IFC’s renewed support will allow us to increase banking penetration, reducing gaps in formal financing for local microenterprises, many of which are managed by women,” said Jose Castillo, Mibanco’s CEO. “We appreciate IFC’s support and long-term partnership.”
Dolika Banda, IFC’s Director for Financial Markets in Latin America and Africa, said: “This new financing shows IFC’s continuing work to improve access to finance to the lower-income segments of the population in Peru. Our long-term partnership with Mibanco and its sponsors aims to expand services that will support individual entrepreneurship initiatives in the country and more equitable growth.”
The financing is consistent with IFC and World Bank strategy in Peru to increase economic growth and competitiveness, reduce poverty and inequality, and expand growth to a wider client base by providing access to finance for MSMEs and low- and middle- income households. As of September 2011, IFC’s committed investment portfolio in Peru totaled $840 million.
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.
Mibanco was incorporated in 1998 as a private commercial bank specialized in microfinance. The Bank has grown to become Peru’s fifth largest bank, holding an 18 percent market share among new banked clients. Mibanco has a network of 117 branches located in 20 of Peru’s 24 departments. The Bank provides micro loans of an average size of approximately $2,400. The Bank is internationally rated BB+, one notch below investment grade, and was awarded a prize for the best microfinance institution in Latin America by IDB in 2009. For more information, please visit www.mibanco.com.
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