Compartamos Studies Ex-Mexico Expansion

Fresh off an equity reorganization designed to facilitate international expansion, Mexico’s Banco Compartamos is looking at various options outside Mexico. The microlender, which last year transferred its Mexico listing to its financial holdco, is considering both Central and South America, CFO Patricio Diez de Bonilla tells LatinFinance. “Growing organically in Central America would be very simple,” he says, though not necessarily a fast process. The business model that serves it well in southern Mexico would be easily applicable to a market such as Guatemala, for example, since both are predominantly rural and less affluent than other markets. An acquisition would be more likely in Brazil, Colombia or Peru, where microfinance conditions are different. Peru is very mature and quite competitive, Diez de Bonilla says, while Brazil is “just starting.” As for financing, he explains Compartamos plans to be a regular domestic debt issuer, and plans to match last years MXP1bn sale with another in the third quarter this year, he says.