Lima, March 29, 2004—The International
Finance Corporation (IFC), the private sector arm of the World Bank Group,
has signed an agreement to provide US$40 million to Banco Internacional
del Peru – Interbank , to help expand the nascent housing finance market
IFC is providing a US$40 million warehouse line of credit to Interbank
to support its mortgage lending operations and its planned mortgage-backed
securitization program. IFC’s relationship with Interbank began in 1997
when IFC made an “A” loan of US$20 million and a “B” loan of US$100
million funded through a structured US commercial paper program to provide
long-term financing to middle market companies in Peru.
The agreement was signed today in Lima by Marcos Brujis, Manager of Business
Development in IFC’s Latin America and Caribbean Department, and Ismael
Benavides Ferreyros, Chief Executive Officer of Interbank.
This investment is part of IFC's strategy to develop Peru's housing finance
sector by increasing mortgage origination. IFC's financing will promote
competition and stimulate growth in the housing sector by providing affordable
housing finance to Peruvian households, and develop the country's financial
markets by expanding an important asset class.
"The development of broad-based housing finance market is an important
building block of the country's financial sector. A functioning mortgage
system will help create a more liquid housing market and enable more first-time
buyers to purchase their own property. In addition, the development of
the market will create employment in the construction sector and related
industries" said Marcos Brujis at the signing ceremony in Lima.
Mr. Benavides Ferreyros said “We are extremely pleased with the fine partnership
we have developed with the IFC. IFC's investment is a vote of confidence
in Interbank and in the future of the Peruvian financial markets.”
Mark Alloway, Senior Manager of IFC’s Global Financial Markets Department,
added “Housing finance is at the heart of IFC's strategy to strengthen
finance institutions in Peru, and by supporting Interbank, IFC will help
provide suitable and affordable housing for the Peruvian population. IFC's
investment in Interbank will help provide a demonstration effect on the
Peruvian banking sector seeking future long-term funding for housing finance”
Interbank is the fourth-largest commercial bank in Peru, offering a wide
range of banking services to its more than 520,000 clients. As of December
2003, Interbank had a total of 8.6% of the deposits and 9.6% of the loans
of the banking system. Interbank services its clients through a branch
network of 90 “financial stores,” with a national presence, including
service centers in the country’s largest retail stores. Interbank also
has 400 ATMs , a telemarketing center, phone banking and access through
the Internet. This transaction complements the bank’s current strategy
focused on developing strong mortgage and consumer banking franchises.
Currently Interbank is the leader in consumer banking in Peru and seeks
a similar position in the mortgage market.
IFC’s strategy in Peru focuses on supporting sectors that provide the
greatest benefit to the Peruvian private sector, in particular via the
development of financial and physical infrastructure, and supporting competitive
manufacturing and services companies. The proposed project fits well
with IFC’s strategy as it will help the development of the incipient housing
finance sector in Peru. It will also support the development of the local
capital markets by building a securitizable pool of mortgage assets which
will eventually benefit the Peruvian capital markets.
IFC's mission (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC's worldwide committed portfolio
as of FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.