Banco de Credito acquires microfinance firm

| September 11, 2009
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Peru’s biggest banking group this week announced it has acquired a 77.1% stake in microfinance firm Financiera Edyficar.

Banco de Credito said it has agreed to acquire the shareholding for $80 million.

Chief executive Walter Bayly said the move is part of Banco de Credito’s plan to acquire 100% of Edyficar, which is currently controlled by non-governmental organisation CARE.

“It’s very likely, though there is no confirmation yet, that we’ll wind up being 100 percent owners of the company,” Bayly said.

“We consider Edyficar to be a success in its market segment, and we want to bring capital and technology so that it can continue expanding its current capacities and to implement its strategic plan.”

Aside from CARE, other holders in Edyficar include MicroVest, a microfinance investment firm, and International Finance Corp.

The acquisition increases Banco de Credito’s share of Peru’s microfinance market to 20.6%, up from 16%.

Edyficar is Latin America’s ninth largest microfinance company. In July 2009, its loan portfolio was worth approximately $210 million.

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