MICROCAPITAL BRIEF: Peru-based Financiera Edyficar’s Acquisition of 61% Stake in Mibanco Receives Regulatory Approval

Peru-based microlender Financiera Edyficar (Edyficar), an operating subsidiary of Peruvian holding company Creditcorp, has received regulatory approval from the Peruvian Superintendency of Banks, Insurance and Pension Funds, the financial sector regulator in the country, for its proposed USD 179 million acquisition of a 60.7-percent stake in Mibanco, a Peruvian microfinance institution (MFI) that is a subsidiary of nonprofit holding company Grupo Accion Comunitaria del Peru (ACP). Subsequent to the regulatory approval, Accion, a US-based nonprofit and owner of 6.33 percent of Mibanco equity as of December 31, 2012, released a statement in support in the transaction.

According to a statement attributed to Esteban Altschul, chief operating officer of Accion, “Accion is greatly encouraged by, and strongly supportive of, [the]…proposed investment…. The bank’s resources, experience, and track record will be invaluable in advancing the work of financial inclusion that Mibanco launched. We anticipate that Creditcorp will substantially strengthen the governance of the institution.”

As of year-end 2012, Mibanco reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 2.2 billion, a gross loan portfolio of USD 1.9 billion, return on assets of -0.10 percent, return on equity of -0.89 percent and 505,000 active borrowers. Mibanco also reported total deposits of USD 1.5 billion and 325,000 depositors. ACP owns majority stakes in 23 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in ten Latin American countries. For the year 2012, ACP reported total assets of PEN 6.34 billion (USD 2.49 billion). As of December 31, 2013, Edyficar reported to MIX total assets of USD 1.2 billion, 520,000 active borrowers, a gross loan portfolio of USD 937.3 million, total deposits of USD 435.0 million, 2,275 depositors, return on assets of 4.23 percent and return on equity of 41.0 percent. As of December 2013, Creditcorp reported total assets of USD 40.9 billion, return on assets of 1.4 percent and return on equity of 13.4 percent.

By A’kos Szebeni, Research Associate

About Mibanco

Mibanco is a nonprofit private Peruvian bank that was founded in 1998 and aims to assist in the development of micro- and small enterprises (MSEs). Its strategy is to target markets “where demand for micro-credit is highest and supply weakest,” mainly focusing on the Lima and Callao areas. Mibanco offers both credit and savings products and employs both individual and solidarity group lending methodologies. Loans are offered for working capital and fixed asset purchases. Loan sizes range from the local-currency equivalent of USD 100 to USD 100,000, with loan terms of 3 to 60 months and interest rates ranging from 25 percent to 50 percent per year. As of year-end 2012, Mibanco reported to the Microfinance Information Exchange (MIX), a US-based nonprofit data provider, total assets of USD 2.2 billion, a gross loan portfolio of USD 1.9 billion, return on assets (ROA) of -0.10 percent, return on equity (ROE) of -0.89 percent and 505,000 active borrowers. Mibanco also reported total deposits of USD 1.5 billion and 325,000 depositors. As of February 2014, Mibanco was in the process of being sold by nonprofit holding company Grupo ACP (Accion Comunitaria del Peru) to Financiera Edyficar, a subsidiary of Peruvian for-profit holding company Creditcorp.

About Grupo Accion Comunitaria del Peru (ACP)

Established in 1969 as Accion Comunitaria del Peru (ACP), Grupo ACP is a Peruvian nonprofit holding company focusing on social inclusion for low-income households. Grupo ACP owns majority stakes in 23 companies that provide financial services including microfinance, housing, infrastructure and microinsurance in ten Latin American countries: Argentina, Bolivia, Brazil, Ecuador, El Salvador, Guatemala, Mexico, Paraguay, Peru and Uruguay. For the year 2012, ACP reported total assets of PEN 6.34 billion (USD 2.49 billion). In 2014, ACP sold its largest asset, a 61-percent stake in Peru’s Mibanco to Financiera Edyficar, a subsidiary of Peruvian for-profit holding company Creditcorp.

About Financiera Edyficar (Edyficar)

Established in Peru in 1997, Financiera Edyficar (Edyficar) is a financial institution that provides services to low-income individuals, in particular small-business owners. In 2009, the institution was acquired by Banco de Credito del Peru (BCP), an operating subsidiary of Creditcorp, a Peruvian bank holding company. As of December 31, 2013, Edyficar reported to MIX total assets of USD 1.2 billion, 520,000 active borrowers, a gross loan portfolio of USD 937.3 million, total deposits of USD 435.0 million, 2,275 depositors, return on assets of 4.23 percent and return on equity of 41.0 percent.
Sources and Additional Resources:

Accion Press Release, “Accion Supports Sale of Mibanco to Financiera Edyficar,” http://www.accion.org/press-releases/accion-supports-sale-of-mibanco-to-financiera-edyficar

MicroCapital, February 21, 2014, “Creditcorp’s Financiera Edyficar of Peru to Acquire 61% Stake in Mibanco for $179m,” https://www.microcapital.org/microcapital-brief-creditcorps-financiera-edyficar-of-peru-to-acquire-61-stake-in-mibanco-for-179m/

MicroCapital, February 10, 2014, “Owner of Mibanco, Grupo Accion Comunitaria del Peru (ACP) Breaches Debt Covenant; Entire Peruvian Microfinance Sector Under Strain?” https://www.microcapital.org/microcapital-brief-owner-of-mibanco-grupo-accion-comunitaria-del-peru-acp-breaches-debt-covenant-entire-peruvian-microfinance-sector-under-strain/

MicroCapital, November 29, 2013, “Inter-American Development Bank (IDB) Approves $20m Loan to Edyficar of Peru to Support Housing Finance,” https://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-approves-20m-loan-to-edyficar-of-peru-to-support-housing-finance/

MicroCapital, October 20, 2012, “Peru’s Grupo ACP Receives Approval to Convert Microfinance Institution Forjadores de Negocios of Mexico into Banco Forjadores,” https://www.microcapital.org/microcapital-brief-perus-grupo-acp-receives-approval-to-convert-microfinance-institution-forjadores-de-negocios-of-mexico-into-banco-forjadores/

MicroCapital, March 21, 2012, “Fitch Improves Outlook to Positive for Grupo ACP, Owner of Mibanco of Peru and Forjadores of Mexico,” https://www.microcapital.org/microcapital-brief-fitch-improves-outlook-to-positive-for-grupo-acp-owner-of-mibanco-of-peru-and-forjadores-of-mexico/

MicroCapital, 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, 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, March 22, 2011, “Microfinance Information Exchange (MIX) Analyzes Profitability of Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-analyzes-profitability-of-microfinance-institutions-mfis/

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

MicroCapital Universe Profile: Grupo Accion Comunitaria del Peru (ACP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grupo+ACP+Inversiones+y+Desarrollo+%28Grupo+ACP%29

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

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

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