Mibanco Taps “Socially Responsible” Investors

Peru’s Mibanco has received a $36m equivalent dual-tranche syndicated loan through the IDB’s Opportunity for the Majority Sector, denominated in soles. The IDB says the deal is its first local currency syndicated B loan, and also the first to be fully sold by so-called “socially responsible” investors. The bank also got a $9m loan denominated in soles from Proparco, through the IDB. Proceeds will be used to increase lending to female microentrepreneurs. “We expect this to open the door for other institutions to be able to receive this type of financing in soles,” says Ramiro Postigo, CFO of Mibanco. He declines to comment on pricing or fees. The A loan from the IDB was for the equivalent of $10m. IDB was lead arranger on the B loan, which was for $26m equivalent, with participation coming from private investors. The Dexia-Microcredit fund, managed by Blue Orchard, contributed $17.5m, Oiko Credit put forward $6.5m and Calvert Foundation gave $2m. The B loan was originally planned for $10m, but upsized to meet demand, Susan Olsen, investment officer at the IDB tells LatinFinance. The A loan was for 5 years, with a 4 year average life and the B loan was made up of a 3 year bullet and a fully amortizing 5 year loan, with a 2.5-year average life. The IDB declines to comment on the exact price of the loans, but says interest payments are between 6.5%-7.0% fixed in soles. Jozef Henriquez, head of IDB syndications, says that there has been a marked increase in socially responsible investment funds, and also of investors looking to de-dollarize and thus participate more in local currency. “We are in talks with other social investors to do similar deals this year in other countries, including Ecuador and Paraguay,” he adds.