Financiera Independencia, a Mexican microfinance institution, recently concluded an 85 million share capital increase. All shares were subscribed at the issue price of MXN 10 (USD 0.761) per share for a total offering of MXN 850 million (USD 65 million). Eton Park Capital Management, an investment firm based in New York, subscribed 70 million of the shares for MXN 700 million (USD 54.5 million).

Proceeds from the capital raising will be used to finance the MXN 530 million (USD 40.3 million) acquisition of Financiera Finsol, a large group lending microfinance institution in Mexico, and a group of related entities, including Finsol Brazil, a smaller microfinance institution (MFI) in Brazil. Remaining capital will be used to strengthen the balance sheets of the acquired companies.

By Jay Kumar, Research Assistant

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 USD 371.2 million (MXP 4,793 million) and operated in 198 offices in 143 cities in 31 of Mexico’s 32 federal entities.

Additional Sources:
1. Source Article: PRNewswire: Financiera Independencia Concludes 85,000,000 Share Capital Increase: http://www.prnewswire.com/news-releases/financiera-independencia-conclud…
2. MicroCapital Universe: Financiera Independencia: http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fin…
3.MicroCapital Universe: Eton Park Capital Management: http://www.microcapital.org/microcapital-brief-eton-park-capital-managem…
4. MicroCapital Brief: http://www.microcapital.org/microcapitalorg-brief-financiera-independenc…