IFC to Invest USD 4.6 Million in Peru?s Microfinance Institution
Monday, July 25, 2011
IFC, a private sector arm of the World Bank Group, is contributing to the capital increase of microfinance lender, Caja Nuestra Gente with an investment of US $4.6 million. The investment will help Caja Nuestra Gente expand its operations in rural areas and among low-income urban communities in Peru. Caja Nuestra Gente is owned by Spain’s BBVA Microfinance Foundation (FMBBVA).
In addition to this investment, IFC has also opened a medium-term local-currency loan facility to support Caja Nuestra Gente’s expansion, in the amount of 25 million soles (about US $9 million).
The IFC’s financing will allow Caja Nuestra Gente to double the number of microenterprise loans in Peru in five years.
Caja Nuestra Gente, focuses on social inclusion, serving approximately 3, 26,000 clients through its 116 offices. It is currently merging with Financiera Confianza – in which it holds a 64% stake – to create a rural microfinance institution in Peru.
BBVA Microfinance Foundation was created in May 2007 to promote the sustainable economic and social development of society’s least advantaged groups, through access to productive microfinance.