Grupo ACP issues US$85mn in bonds as Mibanco seeks IFC syndicated loan

- Friday, March 25, 2011

Grupo ACP issues US$85mn in bonds as Mibanco seeks IFC syndicated loan

Fattening up its war chest following several incursions into new Latin American markets, Grupo ACP just issued US$85mn in 10-year bonds on the international market, even as its Peruvian microfinance bank, Mibanco, seeks a US$60mn syndicated loan through the IFC.

The debt issue was handled by Banco de Chile (NYSE: BCH), Citi (NYSE: C), IM Trust International and LXG Capital International, according to a press release from Grupo ACP.

The release said the debt would go toward growing Grupo ACP's businesses in Peru, as well as its microlender - Forjadores - in Mexico and the microfinance business it recently launched in Brazil.

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The 10-year bonds are listed on the Luxembourg Stock Exchange, and their principal will be paid out in a lump sum upon maturity.

MIBANCO SEEKING FUNDS AS WELL

At the same time, Grupo ACP's flagship Peruvian microfinance bank, Mibanco, is seeking a US$60mn syndicated loan from the IFC.

According to information on the IFC's website, "The proposed project will support Mibanco's expected portfolio growth through a syndicated transaction in local and foreign currency."

The IFC board is expecting to discuss the project in late April.

Mibanco has faced new competition in recent years, as BBVA's (NYSE: BBVA) non-profit microfinance foundation has pushed into the Peruvian market.

Most recently, Fundación Microfinanzas announced a merger of its local subsidiary, Crédito Nuestra Gente, with Peruvian finance company Confianza, adding that it would seek a banking license in the country for the new entity.