Mibanco Raises $40m in B Loan Syndication

Mibanco, the Peruvian microfinance bank, raised a greater than anticipated $40m from a broadly syndicated B loan, which IFC officials claim is the first such facility for a LatAm microfinance institution. The deal is part of a 3-year transaction with a 1-year grace period that pays Libor plus 150bp with an up-front fee of 60bp. The loan, whose proceeds will be used to expand the bank’s microlending capabilities, was originally launched at $30m. It was designed to broaden the bank’s relationships with lenders. Lead arrangers with $5m tickets included HSBC, Bancolombia, Natixis, Rabobank and State Bank of India. Co-arrangers with $3m tickets included Republic Bank, Israel Discount Bank and WGZ Bank. Microfinance-focused hedge fund Minlam Asset Management joined as a participant with a $1.5m ticket. Wachovia and the IFC had the books on the deal, a follow on from a $29m A loan Mibanco took out with the IFC in June 2006