The Inter-American Investment Corporation (IIC), a member of the US-based Inter-American Development Bank (IDB) Group, has approved a USD 15 million loan to Mibanco Banco de la Microempresa SA, a private Peruvian bank that provides a range of financial services to micro- and small enterprises (MSEs). The loan will be used to expand the bank’s MSE loan portfolio through on-lending to an expected 1,000 customers.
This is the second investment agreement between IIC and Mibanco. In 2007, IIC provided a USD 7 million line of credit to Mibanco to support the expansion of its MSE loan portfolio. As of December 31, 2010, Mibanco reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 1.59 billion, a gross loan portfolio of USD 1.3 billion, return on assets (ROA) of 2.41 percent, return on equity (ROE) of 28 percent and 401,000 active borrowers. Mibanco also reported total deposits of USD 1.1 billion and 390,000 depositors.
By Rohan Trivedi, Research Associate
About Mibanco Banco de la Microempresa SA:
Mibanco, created in 1998, is a private Peruvian bank that aims to assist 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 area. 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 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 December 31, 2010, Mibanco reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 1.59 billion, a gross loan portfolio of USD 1.3 billion, return on assets (ROA) of 2.41 percent, return on equity (ROE) of 28 percent and 401,000 active borrowers. Mibanco also reported total deposits of USD 1.1 billion and 390,000 depositors.
About The Inter-American Investment Corporation (IIC):
Founded in 1985, the Inter-American Investment Corporation (IIC) is a member of the Inter-American Development Bank (IDB) Group. IIC supports the establishment and expansion of private enterprises that help individuals and micro-, small and medium-sized enterprises (MSMEs) in Latin America and the Caribbean gain access to financial services. The mission of IIC is to promote economic development by contributing to the development of private enterprises. It provides both financing and advisory services to private enterprises in the region. In 2010, IIC reported total assets of USD 1.4 billion and provided USD 375 million in funding to MSMEs in Latin America and the Caribbean.
About The Inter-American Development Bank (IDB):
The Inter-American Development Bank (IDB) is a US-based multilateral finance institution established in 1959 that operates in Latin America and the Caribbean. IDB works with governments, companies and nongovernmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health, education and other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by 48 member countries, 26 of which are located in Latin America and the Caribbean. IDB reported total assets of USD 84 billion as of December 31, 2009.
Sources and Additional Resources:
[1] Inter-American Investment Corporation (IIC) Press Release: “With new loan, IIC renews its commitment to Peru’s Mibanco, Banco de la Microempresa S.A.”, http://www.iic.int/newsrelease/view.asp?id=852
MicroCapital.org story, February 9, 2011: “MICROCAPITAL BRIEF: Inter-American Investment Corporation (IIC) Approves $15m Loan for Microfinance Institutions in Peru”, https://www.microcapital.org/microcapital-brief-inter-american-investment-corporation-iic-approves-15m-loan-for-microfinance-institutions-in-peru/
MicroCapital.org story, August 13, 2010: “MICROCAPITAL BRIEF: Peruvian Microfinance Institution (MFI) Mibanco Receives $45m Syndicated Loan from Inter-American Development Bank (IDB), BlueOrchard, Oikocredit, the Calvert Foundation and Societe de Promotion et de Participation pour la Cooperation Economique (PROPARCO)”, https://www.microcapital.org/microcapital-brief-peruvian-microfinance-institution-mfi-mibanco-receives-45m-syndicated-loan-from-inter-american-development-bank-idb-blueorchard-oikocredit-the-calvert-foundation-and-societ/
MicroCapital.org story, December 22, 2009: “MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) to Provide $10m Loan to Mibanco of Peru to Help Launch Microfinance Product”, https://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-to-provide-10m-loan-to-mibanco-of-peru-to-help-launch-microfinance-product/
MicroCapital Universe Profile: Banco de la Microempresa SA (Mibanco), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mibanco
MicroCapital Universe Profile: Inter-American Investment Corporation (IIC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Investment+Corporation+%28IIC%29
MicroCapital Universe Profile: Inter-American Development Bank (IDB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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