MICROCAPITAL BRIEF: Mexican Microfinance Institution (MFI) Compartamos Banco to Acquire 82% Stake in Peruvian Lender Financiera Creditos Arequipa SA

Compartamos Banco, a Mexico-based microfinance institution (MFI), has announced that it plans to acquire an 82.7-percent stake in Financiera Creditos Arequipa SA (Financiera Crear), a Peruvian MFI, for USD 63 million. This acquisition is the first in Compartamos Banco’s expansion into international markets that was announced in MicroCapital stories dating back to April 2010.

Compartamos Banco reportedly expects to close the deal in the second quarter of 2011 without issuing equity to finance the transaction [1]. In December 2010, Compartamos swapped shares in its bank Banco Compartamos for shares in a new holding company, Compartamos SAB, to give it greater flexibility to expand into other markets both in Mexico and abroad [1] [2]. As of December 2010, Compartamos Banco has a total loan portfolio of MXN 9.76 billion (USD 803 million).

As of the end of 2010, Financiera Crear reports having 87,302 customers, 24 branches and a loan portfolio of USD 130 million.

By: Alexandra Pattee, Research Associate

About Banco Compartamos: Banco Compartamos is a microfinance bank based in Mexico that was founded in 1990. It offers group and individual loans in rural and urban areas. Banco Compartamos provides loans to low-income people for business and home improvement purposes. It also offers voluntary savings and insurance products. The company made its initial public offering (IPO) in 2007 on the New York and Mexican stock exchanges in a transaction worth USD 467 million, and, as of December 2010, has a total loan portfolio of MXN 9.76 billion (the equivalent of USD 803 million).

About Financiera Creditos Arequipa SA (Financiera Crear): About Financiera Creditos Arequipa SA (Financiera Crear) is a Preuvian microfinance institution (MFI). Edpyme Crear Arequipa was founded in 1998 by the NGO “Habitat Arequipa Siglo XXI”. As of the end of 2010, Financiera Crear reports having 87,302 customers, 24 branches and a loan portfolio of USD 130 million.

Sources and Resources:

[1] Andina, “Mexico’s Compartamos to buy 82.7% of Peruvian lender for $63mln”, http://www.andina.com.pe/ingles/Noticia.aspx?id=pMimxHBFAWA=

[2] Wall Street Journal: “Mexico’s Compartamos To Switch Shares To Holding Company”, http://online.wsj.com/article/BT-CO-20101117-706609.html

MicroCapital.org Article, February 25, 2011, “Banco Compartamos of Mexico Reports Flat Net Profit For Q4 as Staffing Level Rises 33% in One Year”, https://www.microcapital.org/microcapital-brief-banco-compartamos-of-mexico-reports-flat-net-profit-for-q4-as-staffing-level-rises-33-in-one-year/

MicroCapital.org Article, January 24, 2011, “Mexican Microfinance Bank Compartamos Banco Looks to Expand in other Latin American Nations”, https://www.microcapital.org/microcapital-brief-mexican-microfinance-bank-compartamos-banco-looks-to-expand-in-other-latin-american-nations/

MicroCapital.org Article, November 24, 2010, “Eyeing International Expansion, Mexican Microfinance Bank Compartamos Banco Directs Shares to Holding Company”, https://www.microcapital.org/microcapital-brief-eyeing-international-expansion-mexican-microfinance-bank-compartamos-banco-directs-shares-to-holding-company/

MicroCapital.org Article, November 9, 2010, “Microfinance Bank Compartamos Banco, Researchers Dean Karlan of Yale University and Jonathan Zinman of Dartmouth University to Study How Customers Use Microfinance Products”, https://www.microcapital.org/microcapital-brief-microfinance-bank-compartamos-banco-researchers-dean-karlan-of-yale-university-and-jonathan-zinman-of-dartmouth-university-to-study-how-customers-use-microfinance-products/

MicroCapital.org Article, October 21, 2010, “Mexican Microfinance Institution (MFI) Compartamos Banco Raises $80m With Bond Issue”, https://www.microcapital.org/microcapital-brief-mexican-microfinance-institution-mfi-compartamos-banco-raises-80m-with-bond-issue/

MicroCapital.org Article, August 2, 2010, “Mexican Microfinance Institution (MFI) Banco Compartamos Releases Non-Audited Financial Results for Second Quarter 2010 Reporting Significant Growth”, https://www.microcapital.org/microcapital-brief-mexican-microfinance-institution-mfi-banco-compartamos-releases-non-audited-financial-results-for-second-quarter-2010-reporting-significant-growth/

MicroCapital.org Article, April 26, 2010, “Compartamos Banco, Mexican Microfinance Bank, Targets Latin American Expansion by Acquisition”, https://www.microcapital.org/microcapital-brief-compartamos-banco-mexican-microfinance-bank-targets-latin-american-expansion-by-acquisition/

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

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

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

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