MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $18m to Microfinance Institution Financiera Confianza of Peru to Support Low-Income Entrepreneurs

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has announced that it is loaning USD 18 million to Financiera Confianza, a Peruvian microfinance institution (MFI) that offers microloans and deposit services to low-income entrepreneurs [1]. The loan is intended to support the expansion of the MFI’s operations in low-income and rural areas in Peru.

Financiera Confianza is one of the eight financial entities associated with Fundacion Microfinanzas BBVA, a nonprofit organization (NGO) founded by Spain-based Banco Bilbao Vizcaya Argentaria (BBVA) Group. IFC holds a 13.1-percent stake in the MFI. As of year-end 2012, Financiera Confianza reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 635 million, a gross loan portfolio of USD 516.5 million outstanding to 97,000 borrowers, USD 200 million in deposits from 46,000 depositors and has 150 branches in Peru.

As of 2013, IFC reported total assets of USD 77.5 billion and has 184 member countries.

By Nisha Koul, Research Associate

About Financiera Confianza: Financiera Confianza is a microfinance institution (MFI) that was founded in Peru in 1992 as the Entrepreneurial Development Program by the US-based Inter-American Development Bank (IADB) and the Peruvian nongovernmental organization (NGO) Servicios Educativos Promoción y Apoyo Rural (SEPAR). In 1998, the program became an independent financial institution and was renamed Edpyme Confianza. In 2009, it again changed its name to Financiera Confianza. In 2013, Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente, a Peruvian MFI, merged with it and the combined entity became one of eight financial entities affiliated with Spanish NGO Fundacion BBVA Microfinanzas, which was founded by Banco Bilbao Vizcaya Argentaria (BBVA) Group of Spain. Financiera Confianza offers financial services to entrepreneurs in rural and urban areas. As of year-end 2012, Financiera Confianza reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 635 million, a gross loan portfolio of USD 516.5 million outstanding to 97,000 borrowers and USD 200 million in deposits from 46,000 depositors.

About Fundacion BBVA Microfinanzas: Fundacion BBVA Microfinanzas (BBVA Microfinance Foundation) is a Spanish nonprofit organization that was created in May 2007 by Spainish bank Banco Bilbao Vizcaya Argentaria (BBVA) Group. The goal of the foundation is to boost the economic and social development of disadvantaged people through access to productive microfinance. Fundacion BBVA Microfinanzas has a network of eight financial entities in Argentina, Colombia, Dominican Republic, Panama, Peru and Puerto Rico as 2014. As of December 2011, it reported total assets of USD 941 million with approximately 900,000 borrowers.

About International Finance Corporation: The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, 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. The IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources:

[1] Press Release submitted to MicroCapital by Fundacion BBVA Microfinanzas, June 2014.

MicroCapital Story, January 7, 2014, “ResponsAbility of Switzerland Loans $20m to Microfinance Institution Financiera Confianza of Peru,” https://www.microcapital.org/microcapital-brief-responsability-of-switzerland-loans-20m-to-microfinance-institution-financiera-confianza-of-peru/

MicroCapital Story, April 27, 2013, “Caja Rural de Ahorro y Credito (CRAC) Nuestra Gente of Peru Now Controlled by Fundacion Microfinannzas BBVA, to be Merged into Financiera Confianza,” https://www.microcapital.org/microcapital-brief-caja-rural-de-ahorro-y-credito-crac-nuestra-gente-of-peru-now-controlled-by-fundacion-microfinannzas-bbva-to-be-merged-into-financiera-confianza/

MicroCapital Story, November 28, 2012, “Fundacion Microfinanzas BBVA of Spain Takes 31% Stake in Asociación Dominicana para el Desarrollo de la Mujer (ADOPEM) of the Dominican Republic,” https://www.microcapital.org/microcapital-brief-fundacion-microfinanzas-bbva-of-spain-takes-31-stake-in-asociacion-dominicana-para-el-desarrollo-de-la-mujer-adopem-of-the-dominican-republic/

MicroCapital Universe Profile, Financiera Confianza, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Confianza

MicroCapital Universe Profile, Fundacion BBVA Microfinanzas, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fundaci%C3%B3n+BBVA+Microfinanzas

MicroCapital Universe Profile, International Finance Corporation,  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

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