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

Friday, March 25, 2011

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.


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.