IFC Sees More Strategic Plays

There should be more opportunities for IFC equity investments in LatAm M&A transactions, especially regional companies expanding cross border, an official tells LatinFinance. The multilateral lender took a $200m stake in Grupo Suramericana to help the Colombian financial group purchase ING’s pension assets last year, and is open to other similar opportunities going forward. “Sura is a regional player looking to become a pension operator across countries, something that governments need. They are in the region to stay, and not going anywhere. We have seen the emergence of these kinds of companies,” Giri Jadeja, the IFC’s senior manager for LatAm and the Caribbean, says. The IFC has a position in Colombia Davivienda, another regional player expanding across borders, and potentially expanding banking to a greater portion of the population. “We are very encouraged by this and therefore we have made a change in our strategy and are looking to support [such companies],” he adds, noting that there could be other opportunities as more Europeans consider strategic exits from the region.