IFC financed micro-finance financial institution in Peru

The International Finance Corporation (IFC), a member of the World Bank Group, has granted a US$3 million secured financing to Peruvian micro-finance financial institution Edpyme Edyficar. The credit agreement was executed on June 11 and disbursement occurred on December 9.

The financing is secured with an immediate assignment of the collection rights over a certain loan portfolio covering IFC?s credit exposure.

Luis Enrique Palacios, of Rodrigo, Elias & Medrano Abogados, commented: ?This is only the first of several IFC loans to micro-finance financial institutions in Peru. The Peruvian micro-finance market is one of the most developed in Latin America and it is not surprising for multilateral organizations to take an interest in it and support it. IFC?s financing allows Edpyme Edyficar to further diversify its funding sources and offer longer-term products to its clients.?

Edpyme Edyficar provides basic credit services to low-income populations in Peru. It serves approximately 35,000 clients, of whom about 30% live below Peru?s poverty line. Its main product lines are working capital loans and business improvement loans.

Rodrigo, Elias & Medrano Abogados advised the International Finance Corporation through attorneys Jean Paul Chabaneix and Luis Enrique Palacios. In-house counsel Patricia Jungreis Sulser and Jessica Baldassari also advised the International Finance Corporation.

Edpyme Edyficar took counsel from independent attorney Rolando Castellares.