BCP to buy additional US$5.19mn stake in microlender Edyficar

Peru's largest bank Banco de Crédito (BCP) has reached an agreement with IFC to buy the latter's 5.4% stake in Peruvian finance company Financiera Edyficar for US$5.19mn, BCP said in a filing with local securities regulator Conasev. Early September BCP announced the acquisition of a 77.2% stake in Edyficar from NGO CARE, and last week the bank announced the purchase of an additional 8.5% stake in the finance company from US-based Microvest.

BCP will pay for the IFC stake with its own funds and hold 91.1% of Edyficar's total stock after the transaction.

Peru's financial services regulator SBS on October 2 approved BCB's acquisition of up to 100% of Financiera Edyficar's equity, the filing said. BCP is also required by local capital market rules to make a public stock offering to acquire Edyficar's remaining shares.

Micro loan-focused Edyficar, which BCP said in September it valued at US$96mn, had a loan book of 619mn soles (currently US$215mn) at the end of July.

BCP was the country's second largest player in microenterprise loans as of end-July, with 1.82bn soles in such loans, giving it a 35% market share. It followed only Mibanco, which had 2.03bn soles in microenterprise loans for a 38% market share.

Edyficar, which has 195,000 clients, will continue to operate independently, maintain its brand name and continue to focus on providing financial services to low-income earners, according to a previous statement from BCP.

Publication: Andina - English Newswire
Provider: Andina
October 7, 2009

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