Honduras: IFC Capitalization Fund Invests $70 Million in Ficohsa to Support SMEs
Washington DC, United States, September, 30 2011 -
IFC Capitalization Fund signed agreements today to invest $70 million in Banco Financiera Comercial Hondurena, S.A. (Ficohsa), a leading commercial bank in Honduras, to support lending to the country’s small and medium enterprises.
IFC Capitalization Fund, which is managed by IFC Asset Management Company, will invest $32 million in equity and $38 million in subordinated debt, providing long-term capital resources to Ficohsa for its capitalization and expansion plans. This is the fund’s first investment in Central America.
Camilo Atala, Ficohsa CEO and Chairman, said: “IFC’s $70 million to support Banco Ficohsa’s capital base will strengthen our capacity to support small and medium enterprises in Honduras as well as large projects that are essential for the country’s economic and social development." He added: "Ficohsa is a leader in sustainability and will continue supporting socially and environmentally sustainable development.”
Ficohsa is a longstanding client of IFC, a member of the World Bank Group. In 2007, IFC provided a $20 million loan to support lending for housing finance and small and medium enterprises. IFC has also provided $25 million to support the bank’s import and export finance activity. In addition, IFC has provided advisory services to help strengthen Ficohsa’s corporate governance and lending operations.
“IFC Capitalization Fund’s investments will support Ficohsa’s capital adequacy and prepare the bank for future growth opportunities,” said Marcos Brujis, head of IFC Capitalization Fund. “We look forward to partnering with Ficohsa to support economic growth and profitable job creation in Honduras.”
Dolika Banda, IFC Director for Financial Markets, said: “This investment in a systemically important, locally owned financial institution sends a strong signal of confidence in the Honduran financial system.”
IFC Capitalization Fund is a global equity and subordinated debt fund founded by the IFC and the Japan Bank for International Cooperation. It invests in banks considered vital to the financial system of emerging-market countries.