International Finance Corporation, a World Bank Group institution dealing with the private sector, will provide PEN 50 million (USD 18 million) in funding to Financiera Confianza, part of BBVA Microfinance Foundation, in order to drive this institution’s activities in Peru.
These new resources will enable Financiera Confianza to extend its operations in Peru, where it currently serves half a million low-income entrepreneurs. Financiera Confianza has a network of over 150 agencies and correspondent branches, most of which are located in rural areas and on town perimeters.
This new financing is a further commitment by IFC to Financiera Confianza, in recognition of its excellent portfolio indicators in the sector. IFC, which is one of Financiera Confianza’s shareholders, provided funding of USD4.4 million in 2011 and USD12.4 million in 2009, when the institution was known as Caja Nuestra Gente.
This investment consolidates the strategic partnership between IFC and BBVA Microfinance Foundation to strengthen Latin America’s microfinance institutions. BBVA Microfinance Foundation is one of the key players in the region’s microfinance sector, offering a wide range of financial services to low-income entrepreneurs, generating their economic and social development sustainably.
As part of this agreement between IFC and BBVA Microfinance Foundation, signed in 2008, IFC has supported Banco de las Microfinanzas Bancamía and Banco Adopem, institutions in the Foundation’s group in Colombia and Dominican Republic, respectively.
Martín Naranjo, general manager of Financiera Confianza, observed that “IFC’s continuing support allows our growth in Peru to move into a higher gear, extending our services to current clients and supporting our entrepreneurs who do not have access to the conventional financial system”.
Developing the microfinance sector has been a priority for IFC in Peru as part of its effort to increase the financial sector’s penetration in rural areas. “This funding demonstrates our support in working to achieve more access to financial services for Peru’s micro-entrepreneurs”, commented Irene Arias, director of IFC for Latin America and the Caribbean.
The new Financiera Confianza is the result of the merger, in May last year, of Caja Nuestra Gente and Financiera Confianza, and belongs to the BBVA Microfinance Foundation Group. Since it was set up in 2007, BBVA Microfinance Foundation has originated productive loans worth USD 6.058 billion to over 4.4 million low-income people to develop their productive activities.
About IFC
IFC is the biggest global development institution dedicated solely to the private sector and is part of the World Bank group. IFC supports companies in over 100 countries and uses its capital, experience and influence to eradicate extreme poverty and promote growth for all. In tax year 2013, IFC’s investment reached a record USD25 billion. With this, IFC empowers the private sector’s capacity to create jobs and, at the same time, face the most pressing challenges of development.
About BBVA Microfinance Foundation
The purpose of BBVA Microfinance Foundation is to drive sustainable and inclusive economic and social development of the most disadvantaged people in society through Responsible Productive Finance. It currently serves over de 1.5 million people through its eight institutions in Latin America: Banco de las Microfinanzas-Bancamía in Colombia; Financiera Confianza in Peru; Banco Adopem in Dominican Republic; Fondo Esperanza and Emprende Microfinanzas in Chile; and Microserfin in Panama.