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IFC Funding Helps BBVA Banco Continental Expand Its Mortgage Lending, Improve Access to Sustainable Financing


In Lima
Cecilia Lozada
Phone: +(51) 1 6112521
E-Mail:
clozada@ifc.org

Marc Tristant

Phone: + (51) 1 611 2515

E-mail:
mtristant@ifc.org


Lima, December 12, 2006 – The International Finance Corporation, the private sector arm of the World Bank Group, and Peru’s BBVA Banco Continental signed an agreement today for a $130 million financing package. This will allow BBVA to expand its mortgage portfolio and loans to small and medium enterprises investing in energy efficiency and forestry projects.

IFC’s financing package consists of a long-term mortgage loan of $100 million to support the expansion of BBVA’s loans operations and a loan facility for $30 million.  The financing will allow the bank to extend its loan portfolio to SMEs investing in projects that promote energy efficiency or sustainable forestry. The loan facility includes $2 million from the Global Environment Facility, which IFC will draw on for technical assistance to help BBVA develop internal capacity to work with these sectors.  


Jyrki Koskelo, Director of IFC’s Global Financial Markets Department, said, “IFC is proud to establish a partnership with BBVA Banco Continental which will allow it to provide mortgages and sustainable finance to middle-income households and SMEs in Peru. We see this as a first step toward creating a solid alliance that will allow both institutions to promote development of the region’s financial sector.”


Marcene Broadwater, IFC Country Manager for Peru, added, “The provision of mortgages and the strengthening of Peru’s financial institutions are key priorities for IFC’s strategy in the country.”  Rachel Kyte, Director of IFC’s Environment and Social Development Department, stated, “Investing in energy efficiency affords benefits to enterprises, which can cut energy costs; to banks, which achieve high rates of return; and to the environment, which benefits from a reduction in greenhouse gas emissions.”  

BBVA Banco Continental’s Managing Director, Jaime Sáenz de Tejada, commented, “This agreement confirms our commitment to supporting financial sector development in Peru. The deal also highlights BBVA’s interest in supporting global environmental policies that promote sustainable development through a balance of economic, social, and environmental issues.”


The agreement was signed by Marcene Broadwater, IFC Country Manager for Peru, and Jaime Sáenz de Tejada and Eduardo Ávila Zaragoza, BBVA’s managing director and assistant general manager, respectively.


About IFC

The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit
www.ifc.org.

About the Global Environment Facility
 
The Global Environment Facility was established in 1991 with the aim of helping developing countries fund projects and programs that protect the global environment. GEF grants support projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. For more information, visit
www.gefweb.org

About BBVA

BBVA Banco Continental is the second-largest commercial bank in Peru. BBVA Banco Continental has 215 branch offices and 332 cash machines throughout Peru and employs 2,774 employees.  The bank has just received a BBB international classification for long-term loans in national and foreign currency by Fitch Ratings.

BBVA
Carlo Reyes
Phone: +(51) 1 2111260
E-mail: creyes@grupobbva.com.pe