Belgium’s Incofin Investment Management (Incofin IM) recently informed MicroCapital that three of its funds, Incofin CVSO, Volksvermogen and Rural Impulse Fund I, have sold their stakes in Financiera Confianza, a Peruvian microfinance institution (MFI) affiliated with Fundacion BBVA MicroFinanzas, which in turn was launched by Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) in 2007. While the sizes and prices of the stakes, which included all Confianza shares held by Incofin IM funds, remain confidential, Incofin IM reports that the funds earned “over five times net value increase” on the investments.
The holdings, which Incofin IM began building in 2003, were sold to an unidentified existing shareholder in Confianza. Over the last 14 years, Incofin IM states that it “played a key role in…the introduction of Social Performance Management practices and firmly establishing the institution’s focus on rural outreach.”
Founded in 1998, Confianza provides microcredit and deposit services to 470,000 clients via 150 branches, with a focus on rural areas of central Peru. It has a loan portfolio of USD 458 million and holds USD 279.9 million in deposits. Fundacion BBVA MicroFinanzas holds stakes in six MFIs in Chile, Colombia, Panama and Peru.
As of 2017, Incofin manages assets worth USD 850 million through the following funds: Incofin CVSO, Impulse Microfinance Investment Fund, Fairtrade Access Fund, Rural Impulse Funds I and II, VDK Loan Portfolio, The Belgian Investment Company account, Volksvermogen, agRIF and Invest in Visions.
Sources and Additional Resources
Information provided directly to MicroCapital by Incofin IM
Fundacion BBVA MicroFinanzas
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