MICROCAPITAL BRIEF: Eton Park Capital Management Announces Plans to Invest $54.5m in Mexican Microfinance Institution Financiera Independencia

Eton Park Capital Management and Financiera Independencia (FI), a Mexican microfinance institution (MFI), have signed an agreement by which Eton Park will subscribe for 70 million shares of FI for MXN 700 million (USD 54.5 million). The announcement was made shortly after FI held a Shareholders’ Meeting, calling for a capital increase of 85 million shares at a subscription price of MXN 10.00 (USD 0.78) per share. The majority of proceeds will be used to finance the MXN 530 million (USD 41 million) acquisition of Financiera Popular Finsol, a savings and loan entity; Finsol Vida, an insurance broker; Finsol, a microfinance institution (MFI); and Instituto Finsol Brazil, a Brazilian MFI.

Eton Park will have the right to subscribe for an additional 45 million shares of FI (25 million shares at MXN 14 (USD 1.08) per share and 20 million shares at MXN 13.50 (USD 1.05) per share), to be exercised at any time during the next five years. Should Eton Park exercise this right, FI will receive MXN 620 million (USD 48 million).

By: Stefanie Rubin, Research Assistant

About Eton Park Capital Management:

Eton Park Capital Management is an investment firm with over USD 12 billion in assets. The firm invests in public equity, fixed income, and alternative investment markets across the globe, with a special emphasis on emerging markets. Eton Park was founded in 2004 and is based in New York, with offices in London and Hong Kong.

About Financiera Independencia:

Founded in 1993, Financiera Independencia is a Mexican microfinance institution traded on the Mexican Stock Exchange (BMV: FINDEP). As of September 2009, Financiera Independencia had a total outstanding loan balance of MXP 4,793.1 million (USD 371.2 million) and operated in 198 offices in 143 cities in 31 of Mexico’s 32 federal entities.

About Finsol:

Founded in 2003, Finsol operates 158 branches in 29 of 32 federal entities in Mexico. It has a total outstanding loan balance of MXP 632.3 million (USD 49 million) and 143,045 clients. Among its products are individual microcredit, group microcredit and life microinsurance (LMI).

About Instituto Finsol Brazil:

Founded in 2006, Instituto Finsol Brazil is a Brazilian microfinance institution (MFI) with an outstanding loan portfolio of R 28.7 million (USD 16.4 million). It operates 16 branches in five Brazilian states and has a total of 30,134 clients.

Additional Resources:

Source Article: Financiera Independencia Press Release: “Eton Park Funds to Invest in Financiera Independencia,” http://www.prnewswire.com/news-releases/eton-park-funds-to-invest-in-financiera-independencia-79608732.html

MICROCAPITAL.ORG BRIEF: Financiera Independencia of Mexico Unveils Plans to Acquire Financiera Finsol and Expand Microfinance Operations to Brazil: https://www.microcapital.org/microcapitalorg-brief-financiera-independencia-of-mexico-unveils-plans-to-acquire-financiera-finsol-and-expand-microfinance-operations-to-brazil/

Financiera Independencia: http://www.independencia.com.mx/index.aspx

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