The Dutch development bank, FMO, provides a USD 20 million loan facility to Financiera Confianza (Confianza) in Peru, an entity part of BBVA Microfinance Foundation, to support the development of micro entrepreneurs and small businesses, particularly in rural regions of Peru.
This transaction marks the start of a long-term relationship between FMO and BBVA Microfinance Foundation, to support and further strengthen the activities of the Foundation in the microfinance segment in Latin America.
Confianza is one of the largest microfinance providers in Peru, being present in all regions. The facility will be denominated in Peruvian Nuevo Sol, which allows for on-lending to entrepreneurs in local currency. Confianza pays special attention to the promotion of sustainable and inclusive development, using its Finance approach, supporting underprivileged entrepreneurs through offering a wide range of financial and non-financial products and training, tailored to their needs.
Peru is one of the best performing economies in Latin America, however financial sector activity remains concentrated in urban zones. Poverty and low level of financial inclusion are mostly found in rural areas, where smallholders often own less than ten hectares of land and only one out of three adults has access to a (formal) bank account. Affordable financial products, client-oriented services and technological innovations are necessary to support financial inclusion in these areas of the country.
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.