MICROCAPITAL BRIEF: Mexican Microfinance Lender Financiera Independencia Acquires Apoyo Economico Familiar (AEF) of Mexico, Apoyo Financiero Incorporated (AFI) of California

Financiera Independencia, a Mexican microfinance lender with MXN 8.6 billion (the equivalent of USD 703 million) in assets, recently announced that it will acquire all of the outstanding shares of Apoyo Economico Familiar (AEF), a Mexican provider of unsecured personal loans with MXN 951 million (the equivalent of USD 77.6 million) in total assets, and purchase a 77-percent ownership stake in Apoyo Financiero Incorporated (AFI), a microfinance lender serving the unbanked Hispanic community in San Francisco, California.

Having posted a net income increase of 11.6 percent to MXN 112.9 million (the equivalent of USD 9.23 million) in the third quarter of 2010, Financiera Independencia has seen rapid growth in its personal loan and working capital loan business in recent years.

Founded in 2005 by a group of investors with experience in microfinance, Apoyo Economic Familiar (AEF) offers consumer loans, microfinance loans and insurance products to the low-income segment of the population in Mexico. The size of the loans ranges from MXN 2,000 to 20,000 (the equivalent of USD 163.6 to USD 1640).

Incorporated in 2006, Apoyo Financiero Incorporated (AFI) began operating in 2007 with a branch in San Francisco, California, primarily serving the Hispanic unbanked community with personal loans with an annual percentage rate of 36 percent. AFI does not report to the microfinance information exchange and further financial details on the organization are not available.

Expected to close completely during the first quarter of 2011, the transactions will be financed with Financiera Independencia’s cash reserves and existing lines of credit.

The deals, which total MXN 1.18 billion (the equivalent of USD 96.3 million), will allow Financiera Independencia to increase its loan portfolio by approximately 15 percent and its client base by approximately 8 percent. It will help the company establish stronger presence in the Mexico City metropolitan area as well as in the southeastern states of Mexico. Financiera Independencia aims to take advantage of AEF’s management team and operational model that “has proved to be highly effective in large cities,” according to Mr Noel Gonzalez, chief executive officer of Financiera Independencia. Furthermore, the stake in AFI establishes for Financiera Independencia a “foothold within the US Hispanic community in San Francisco, California, one of the fastest growing segments of the US population.”

By Paul K Kim, Research Associate

ABOUT Financiera Independencia:
Founded in 1993, Financiera Independencia is a Mexico-based financial institution primarily engaged in the provision of personal loans and credit including CrediPopular, aimed at self-employed individuals; CrediMama, directed to mothers who at least have one child under the age of 18; CrediConstruye, comprising loans for the financing of home construction and improvements and CedriInmediato, oriented towards corporate clients. Additionally, the company is active in the insurance sector providing a range of life and health insurance policies.

SOURCES:
[1] PR Newswire. December, 22 2010. “Financiera Independencia to Acquire Apoyo Economico Familiar and Apoyo Financiero Incorporated” http://banking.einnews.com/pr-news/270883-financiera-independencia-to-ac…

[2] Corporate Information. Financiera Independencia. http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=C484C4Q1…

[3] Financiera Independencia. “Acquisition of Apoyo Económico Familiar & Apoyo Financiero Inc.” http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzYxODMxM3xDa…

MicroCapital’s Microfinance Universe Profile: Financiera Independencia. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fin…

MicroCapital.org Story, September 21, 2009. “Financiera Independencia (Independencia) Announced Increase in Line of Credit With Government-Backed Sociedad Hipotecaria Federal (SHF) From MXP 600 Million (USD 45.2 Million) to MXP 700 Million (USD 52.7 Million)” https://www.microcapital.org/microcapitalorg-story-financiera-independenc…

MicroCapital.org Story, April 27, 2009. “Mexican Microfinance Institution, Financiera Independencia, Reports First Quarter Net Income of MXP 117.2m (USD 8.9m)” https://www.microcapital.org/microcapital-story-mexican-microfinance-inst…

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

Similar Posts: