BanBif Subdebt 3 (IFC-37801)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Peru
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Hold
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 20, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Banco Interamericano de Finanzas
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2018

Disclosed by Bank Mar 23, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project consists of a subordinated debt loan of up to US$20 million to Banco Interamericano de Finanzas (BanBif), a bank catering to Small and Medium Enterprises (SMEs) in Peru. The project is expected to support BanBif’s solvency base in light of the rapid growth achieved during the last years. The project aims to increase access to finance and private sector development, generate employment, and improve environmental and social standards (E&S). This project is one in a series of investments by the IFC into BanBif.

Given that most of the portfolio is of low to medium E&S risk and consists of lending to retail banking and to medium enterprises, the project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy. The overall portfolio risk includes a limited number of business activities that have potential limited adverse environmental and social risks or impacts that are few in number, generally site specific, largely reversible and readily addressed through mitigation measures. For this project BanBif will be required to screen sub loans against the IFC FI Exclusion List (expect for retail and mortgages), national laws and regulations and the IFC Performance Standards.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed project consists of a subordinated debt loan to BanBif which focus its operations in six segments: retail banking including both consumer and mortgages 28%, small and micro loans 2%, medium companies 36%, large enterprises 20% and corporates 14%.

BanBif is majority owned by Grupo Fierro, a Spanish conglomerate. IFC has been a long-term partner for the Bank and in 2013, after multiple financing transactions, IFC made a US$50 million equity investment in BanBif. The Bank’s current shareholding is as follows: (i) Grupo Fierro (87.33%), through two companies, Landy S.A. and Britton S.A, and (ii) IFC (12.67%).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

BanBif was established in 1991, and is currently the fifth largest bank in Peru, by loan portfolio size, with US$3.4 billion in assets and equity of US$245 million. In 2007, the Bank introduced a change in strategy to expand its operations to the SME segment. As result, the SME loan portfolio has had a compound annual growth rate of 24% in the last five years.

The Bank is majority owned by Grupo Fierro (“Sponsor” or “Group”), a Spanish conglomerate with over 80 companies with industrial and financial activities in 11 countries. IFC has been a long-term partner for the Bank and in 2013, after multiple financing transactions, IFC made a US$50 million equity investment in BanBif. The Bank’s current shareholding is as follows: (i) Grupo Fierro (87.33%), through two companies, Landy S.A. and Britton S.A, and (ii) IFC (12.67%).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Ms. Ana Cecilia Justo
Banco Interamericano de Finanzas
Av Rivera Navarrete 600, San Isidro
Lima, Peru
Telephone: +(511) 613 3000
mailto:ajusto@banbif.com.pe

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works