MICROCAPITAL BRIEF: IFC Lends $50m to Microfinance Institution Mibanco of Peru

The International Finance Corporation (IFC), a member of the World Bank Group, recently loaned PEN 167.6 million (approximately USD 50 million) to Mibanco, a Peruvian microfinance institution (MFI).Mibanco plans to use the proceeds for on-lending to small and medium-sized enterprises (SMEs) and low-income earners with the goal of boosting job creation and economic growth in Peru.

Carlos Leiria Pinto, IFC’s Head for the Andean Region, stated “this financing demonstrates our support for the achievement of greater access by microenterprises in Peru to financial services. The longstanding partnership between IFC and Mibanco helps meet the needs of the low-income population groups and create a more inclusive financial sector in the country”.

As of December 2015, IFC has 184 member countries that drive its policies and approve disbursements. As of the same date, IFC reported total assets of USD 87.5 billion, net income of USD 445 million and return on average assets of 0.5 percent. As of December 31, 2014, Mibanco reported to the Microfinance Information Exchange (MIX), a US-based nonprofit data provider, total assets of USD 1.9 billion, a gross loan portfolio of USD 1.4 billion, return on assets (ROA) of -1.08 percent, return on equity (ROE) of -9.91 percent, 297,140 active borrowers, total deposits of USD 1.3 billion and 393,631 depositors.

About Mibanco
Mibanco is a Peruvian bank that was founded in 1998 and aims to assist in the development of micro- and small enterprises (MSEs). Mibanco offers both credit and savings products and employs both individual and solidarity group lending methodologies. Its loans may be used for working capital as well as fixed asset purchases. Loan sizes range from the local-currency equivalent of USD 100 to USD 100,000, with loan terms of 3 months to 60 months and interest rates ranging from 25 percent to 50 percent per year. As of December 31, 2014, Mibanco reported to the Microfinance Information Exchange (MIX), a US-based nonprofit data provider, total assets of USD 1.9 billion, a gross loan portfolio of USD 1.4 billion, return on assets (ROA) of -1.08 percent, return on equity (ROE) of -9.91 percent and 297,140 active borrowers. Mibanco also reported total deposits of USD 1.3 billion and 393,631 depositors.

About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a US-based member of the World Bank Group, offers loans, equity investments, technical assistance, and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of year-end 2015, IFC has 184 member countries that drive its policies and approve disbursements. As of the same year, IFC reported total assets of USD 87.5 billion, net income of USD 445 million and return on average assets of 0.5 percent.

Sources and Additional Resources
[1] IFC.org: IFC Promotes Access to Finance for SMEs in Peru with US$50 Million Loan to Mibanco
[2] MicroCapital Universe Profile: Mibanco Banco de la Microempresa S.A.
[3] MicroCapital Universe Profile: International Finance Corporation (IFC)
[4] Microfinance Information Exchange: MiBanco
[5] IFC.org

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