BBVA Microfinance Foundation acquires the entity “Financiera Confianza” to go further into the poorest rural sectors of Peru

  • The transaction includes the subsequent merger of Financiera Confianza with Caja Nuestra Gente and its conversion into a bank.
  • The resulting bank will be positioned as one of the leaders in the Peruvian microfinance market in terms of number of customers, with leadership and focus on rural areas and those with lower income per capita, where microfinance hardly has any presence.
  • With the acquisition, BBVA Microfinance Foundation consolidates its expansion in the Andean region, with the aim of promoting the economic and social development of disadvantaged people through productive microfinance.

BBVA Microfinance Foundation, a stockholder of Caja Rural de Ahorro and Crédito Nuestra Gente (CNG), has signed an agreement with major stockholders of Financiera Confianza to gain control of this entity and subsequently merge both entities for it to become a bank.

The transaction, subject to obtaining permission from the Superintendency of Banks and Insurance, is intended to create a microfinance bank that aspires to lead rural microfinance in Peru, so that products and financial services reach people with low incomes with no access to the conventional financial system and see their opportunities for development as being limited.

The resulting entity will have two highly-complementary benchmarks in the microfinance sector in a company with greater resources and operational scale that is capable of serving communities with more efficient products and services that respond to their needs. Geographically, the CNG implementation area will be complemented by the markets of Huancayo, Huancavelica, Huanuco, Pasco, and Ucayali.

In addition, they participate as benchmark stockholders in the sector such are BBVA Microfinance Foundation as a senior partner, multilaterals such as IFC (World Bank), the leading European socially-responsible funds, and the NGO founder of Financiera Confianza, SEPAR.

The new entity, with assets in excess of 1,250 million soles, will have over 400,000 small business customers, 2,033 employees and its own network of more than 150 offices and service points.

During the integration process and until its effective merger, the two entities will retain their legal identity, governing bodies and brand, in a process led and coordinated by BBVA Microfinance Foundation.

With this operation, BBVA Microfinance Foundation consolidates its expansion into the Peruvian microfinance market, which began with the creation of Caja Nuestra Gente in 2008, after the acquisition and merger of Caja Rural NorPerú, Caja Rural del Sur and Edpyme Crear Tacna.

In addition to Peru, the Foundation is present in Colombia, where it operates with Banco de las Microfinanzas Bancamía, in Puerto Rico with la Corporación para las Microfinanzas, in Chile with Servicios Microfinancieros S.A., and in Argentina with the company Servicios Microfinacieros S.A.

Entities through which the Foundation currently serves more than 700,000 customers who have been able to undertake a productive activity and improve their living conditions and that of their families.