- The investment will be through an increase in capital, and will provide Caja Nuestra Gente with additional resources to assist its growth and expansion in rural areas.
- The organisation currently has 170,000 low-income economy customers in Peru.
The International Finance Corporation (IFC), a member of the World Bank Group, is to invest $7.4 million in acquiring a capital stake in Caja Nuestra Gente to encourage growth, expansion and social inclusion in rural areas of Peru.
Caja Nuestra Gente, a financial institution specialising in microfinance, was founded in September 2008 by the BBVA Microfinance Foundation (FMBBVA), through a merger of three previous financial institutions. Currently, it has 170,000 customers from low-income economies and holds a portfolio of $146 million. The average amount of the microfinance loans that it grants is $1,506.
This investment forms part of the strategic co-operation agreement signed last year by FMBBVA and the IFC to promote joint investment in microfinance institutions so as to encourage and consolidate the future development of the sector in Latin America.
Manuel Méndez del Río, Chairman of the BBVA Microfinance Foundation, stressed that “the support of the IFC will enable us to speed up the expansion of Caja Nuestra Gente in Peru and reach out to thousands of low-income earners in rural areas where there is currently little or no microfinance activity. We see the co-operation of the IFC as highly positive, because we are sure that it will help us considerably in our efforts to extend the benefits of microfinance throughout the region”.
Roberto Albisetti, IFC Regional Director for Colombia, Venezuela, Ecuador and Peru, explained that “the objective of our long-term co-operation with the BBVA Microfinance Foundation is to facilitate access to markets which are not currently served. This capital investment by the IFC in Nuestra Gente reflects our continued support for improvements in access to financial services in rural, low-income sectors of Peruvian society”.
FMBBVA was founded in 2007, and is currently consolidating a Microfinance Network in Latin America. It has already established a presence in Peru, Colombia (through Banco de las Microfinanzas-Bancamía) and Puerto Rico (through Corporación para las Microfinanzas).
For its part, the IFC has supported the establishment and development of 24 microfinance institutions in Latin America and Caribbean, with a total investment of $213 million.
About the IFC
The IFC is a member of the World Bank Group. It creates opportunities for people to leave poverty behind and improve their lives. It encourages sustainable economic growth in emerging countries by providing support for the development of the private sector, mobilising private capital and offering advisory and risk-mitigation services to businesses and governments. Its new investments in financial year 2008 totalled $16.2 billion, 34% up on the previous year. For more information, please visit www.ifc.org
About the BBVA Microfinance Foundation
The BBVA Microfinance Foundation is a not-for-profit organisation founded in 2007 to provide viable financial services and products at the base of the pyramid, so as to help low-income earners to undertake small-scale production activities to help improve their standards of living.