IFC Grants Davivienda $240 Million Financing

The International Finance Corporation (IFC), the private sector arm of the World Bank, has granted Davivienda a $240 million financing package to support the Colombian bank’s acquisition of state-owned bank Bancafé and to strengthen its capital base. The financing comprises a $75 million direct equity investment and $165 million in subordinated debt. The $75 million injection of capital into Davivienda takes the IFC’s stake in the Colombian bank to 9%. Davivienda bid $927 million last October to win control of state-owned Bancafé.