IFC, Shareholder in Banco Compartamos of Mexico, Acknowledges the Success of its Placement of Shares on the Market
IFC (the International Finance Corporation), the private sector arm of the World Bank Group, is publicly acknowledging the achievement of Mexico’s Banco Compartamos and its shareholders on a successful placement of US$467 million dollars in Series O shares, representing the bank’s social capital. IFC is the third-largest shareholder in Banco Compartamos.
“This transaction confirms the level of maturity of Mexican financial markets, and the growing awareness amongst investors of the potential of the microfinancing sector as regards profitability, impact on development and social responsibility,” said Atul Mehta, IFC’s Director for Latin America and the Caribbean.
This operation is the first of its kind in Mexico and the largest in the microfinancing sector. The success of the operation is shown also by the fact that shares were taken up by both institutional and private investors, and attracted both national and foreign investors.
The International Finance Corporation reaffirms its commitment to support Compartamos and to promote the sustainable development of the microfinancing sector in Mexico and Latin America.
The partnership between IFC and Compartamos began in 2001, when IFC provided financing and equity to help Compartamos develop from a non-governmental organization to a commercially viable entity, thus facilitating access to market financing and expansion of services.
In 2004, IFC provided a 34% partial credit guarantee to two tranches of a five-year bond in local currency (which received an investment grade local rating of AA by Standard & Poor’s, and Fitch), the first for a microfinance institution in Mexico. In September 2006, IFC granted the equivalent in local currency of US$10 million in support of its growth strategy. Prior to today’s shares placement, IFC had a holding of 10.6% in Banco Compartamos.
The strategic priority of IFC, the largest international provider of funding for microfinance in emerging economies, is assisting companies such as Compartamos achieve their growth plans.
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. The IFC provides support to private sector sustainable companies and other partners in the creation of productive employment and the provision of basic services which will enable people to escape poverty and improve their lives. As at FY06, IFC Financial Products had committed over US$ 56 billion in financing for private sector investment and had mobilized an additional US$ 25 billion in syndications for 3,531 companies in 140 developing countries. The IFC Advisory Services, together with other donors, have provided over US$ 1 billion in support of programs to set up small enterprises, increase private participation in infrastructure, create an enabling business environment, increase access to financing and promote environmental and social sustainability. For more information, please visit www.ifc.org.
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