MICROCAPITAL BRIEF: International Finance Corporation (IFC) to Lend $25m to Financiera Creditos Arequipa S.A. (Financiera Crear) of Peru

The International Finance Corporation (IFC), the private investment arm of the World Bank Group, will provide USD 25 million to Financiera Creditos Arequipa SA (Financiera Crear), a Peruvian microfinance company. IFC will lend the equivalent of USD 12.5 million in local currency and the remainder in USD. The funds will be used “to expand financing for micro, small and medium enterprises in low-income and rural areas of the country” [1].

According to data submitted to the US-based, nonprofit Microfinance Information Exchange (MIX), Financiera Crear has total assets of USD 151 million, a gross loan portfolio of USD 131 million, a return on assets (ROA) of 4.37 percent, a return on equity (ROE) of 32.1 percent and 87,300 borrowers. In 2011, Mexican microfinance institution Banco Compartamos of Mexico purchased a majority stake in Finciera Crear.

By Brendan Millan, Research Associate

About International Finance Corporation: A member of the World Bank Group, 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 investments of USD 12.2 billion mobilized to 518 projects.

About World Bank Group: Formally established in 1945, World Bank Group consists of five international organizations that provide leveraged loans generally to low-income nations.

About Financiera Creditos Arequipa SA: Founded in 1988 as a private microfinance company, Financiera Crear provides microloans of up to USD 1,500 and has 27 branches located in Lima and Arequipa, Peru[1]. According to data submitted to the US-based, non-profit Microfinance Information Exchange (MIX), Financiera Crear has total assets of USD 151 million, a gross loan portfolio of USD 131 million, return on assets (ROA) of 4.37 percent, return on equity (ROE) of 32.1 percent and 87,300 borrowers. In 2011, Mexican microfinance institution Banco Compartamos of Mexico purchased a majority stake in Finciera Crear.

Sources and Resources:

[1] International Finance Corporation (IFC): “IFC Provides $25 Million to Peru’s Financiera Crear to Expand Financing for Micro Enterprises.”, http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/1AE1E24F788EF1A5852579A3006F6ADF?OpenDocument

MicroCapital.org article, July 25, 2011, “Compartamos of Mexico Completes Acquisition of Majority Stake in Financiera Creditos Arequipa (Financiera Crear) of Peru”, https://www.microcapital.org/microcapital-brief-compartamos-of-mexico-completes-acquisition-of-majority-stake-in-financiera-creditos-arequipa-financiera-crear-of-peru/

MicroCapital.org article, November 17, 2011, “International Finance Corporation (IFC) Mobilizes $40m to Support Peruvian Microfinance Institution Mibanco”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-mobilizes-40m-to-support-peruvian-microfinance-institution-mibanco/

MicroCapital.org article, July 25, 2011, “International Finance Corporation (IFC) to Provide $4.6m Equity Investment and $9m Loan to Caja Nuestra Gente of Peru”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-provide-4-6m-equity-investment-and-9m-loan-to-caja-nuestra-gente-of-peru/

MicroCapital.org article, April 5, 2011, “Peruvian Microfinance Institution (MFI) Mibanco Seeks $60m Syndicated Loan from International Finance Corporation (IFC), Grupo ACP Issues $85m in Bonds”, https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-seeks-60m-syndicated-loan-from-international-finance-corporation-ifc-grupo-acp-issues-85m-in-bonds/

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

MicroCapital Universe Profile: World Bank Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Group

MicroCapital Universe Profile: Financiera Creditos Arequipa, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financiera+Creditos+Arequipa+SA+%28Financiera+Crear%29

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

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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