Banco G&T Continental, a commercial bank based in Guatemala, recently received a loan of USD 100 million from the International Finance Corporation (IFC) Capitalization Fund, a unit of World Bank Group Member IFC. This loan is intended to help the bank expand services to small and medium-sized enterprises (SMEs) in Costa Rica, El Salvador and Panama. According to Flavio Montenegro, chief executive officer of the bank, “For G&T Continental this is an operation that strengthens our long-term funding and our capital position, which will support Guatemala’s economy increasing the funding available for the industries of our country”. IFC Senior Manager for Financial Markets in Latin America and the Caribbean Giri Jadeja added that, “the investment by the IFC Capitalization Fund will strengthen [Banco G&T’s] capital, allowing it to expand into markets like the under-served micro, small, and medium-enterprise sector.”
Established in 1962, Banco G&T Continental offers financial services through its 324 branches and 2,655 automatic teller machines (ATMs) in Costa Rica, El Salvador and Panama as well as 16 branches in the United States. As of October 31, 2012, it reports total assets of USD 4.78 billion.
IFC Asset Management Company manages total assets of USD 4.5 billion, which includes USD 3 billion in the IFC Capitalization Fund; USD 1 billion in the IFC African, Latin America and Caribbean Fund; and USD 182 million in the Africa Capitalization Fund. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
By Sarah Benali, Research Associate
About Banco G&T Continental
Established in 1962, Banco G&T Continental is a Guatemalan-based commercial bank. Through its 324 branches and 2,655 automatic teller machines (ATMs), it offers services to four market segments in Costa Rica, El Salvador and Panama: “corporate banking for medium-sized and large companies, banking for small businesses, retail banking with individuals, and institutional banking.” Banco G&T also has 16 branches in Los Angeles, New Jersey and New York, USA. It reports total assets of USD 4.78 billion as of October 31, 2012.
About IFC Capitalization Fund
Founded in February 2009, the USD 3 billion IFC Capitalization Fund is a global equity and subordinated debt fund that aims to speed up economic recovery and boost job creation while reducing the impact of the financial downturn that began in 2007, by supporting banks considered vital to the financial markets of individual developing countries. IFC has contributed USD 1 billion for the IFC Capitalization Fund, while the Japanese government has invested USD 2 billion. IFC estimates that the fund will have a total leveraged impact of around USD 75 billion as others co-invest with the fund. The fund is managed by the IFC Asset Management Company, which is a wholly-owned subsidiary of the IFC.
About International Finance Corporation
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.
Sources and Additional Resources
IFC Press Release: “IFC Capitalization Fund Invests $100 Million in Banco G&T Continental to Support SME’s in Central America,” December 2012,
http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/95C767891A6E848085257AD300547039
MicroCapital.org story: “MICROCAPITAL BRIEF: IFC Invests $10m in CoreCo Central America Fund to Support SMEs,” October 8, 2012, https://www.microcapital.org/microcapital-brief-ifc-invests-10m-in-coreco-central-america-fund-to-support-smes-2/
MicroCapital.org story: “MICROCAPITAL BRIEF: Mongolia: International Finance Corporation (IFC) Capitalization Fund Invests $40m in Microfinance Institution XacBank,” July 11, 2012, https://www.microcapital.org/microcapital-brief-mongolia-international-finance-corporation-ifc-capitalization-fund-invests-40m-in-microfinance-institution-xacbank/
MicroCapital Universe Profile: Banco G&T Continental
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+G%26T+Continental
MicroCapital Universe Profile: IFC Capitalization Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=IFC+Capitalization+Fund
MicroCapital Universe Profile: International Finance Corporation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
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