Latin Finance - November/December 2011 - 60

2011

he World Bank’s International Finance Corporation (IFC) outshone other multilaterals this year after funneling some $5.3 billion in financing to banks and companies in LatAm and the Caribbean during fiscal year 2011. Of that amount, about $3 billion came from the IFC’s own account, with the Banco Compartamos – 3Q 2011 Results rest being mobilized through investment Taking a regional approach partners. In total, this marked a 50% Mexico Peru Guatemala increase from the volumes generated Clients 2.2m 100,950 9,691 in 2009, and for that period it was the largest amount of multilateral funding Portfolio* 11,122 2,250 25 extended to the region’s private sector. “More importantly, we have increased ROAA 15.90% 6.30% ROAE 34.60% 46.70% - what we can mobilize,” says Paolo Martelli, IFC director for Latin America * Peru and Guatemala figures are reported under and the Caribbean. “If one of our dollars respective GAAP (Millions of pesos) can help raise three or four dollars, it Source: Banco Compartamos helps to have stronger, more stable growth Compartamos is focusing on enhancing and address poverty.” its Crédito Mujer, a women’s credit Financing went to a breadth of product, as well as Crédito Comerciante, a countries and sectors, allowing the IFC merchant credit service with personal and joint guarantees for enterprising women IFC Investments and Mobilizations and men in groups of five to eight. Getting larger Compartamos says it has strengthened its financial position and considers itself well-capitalized against the volatile 12,000 macroeconomic backdrop. It also has Sum a diversified funding base including Mobilization 10,000 commercial and development banks as IFC own account well local capital markets. Compartamos was recently in the local 8,000 Mexican bond markets with 2 billion peso floater that was upsized from 1.5 billion pesos and priced at TIIE plus 85 basis 6,000 points. Compartamos foresees tapping the local markets again in 2013-2014 to finalize the six billion peso bond program 4,000 started in 2009. “Since then we have been issuing debt every year,” Diez de Bonilla adds. 2,000 With respect to tapping the international bond market, Compartamos sees this as medium to long-term strategy. 0 FY09 FY10 FY11 At some point it may even consider issuing bonds locally through its new Peruvian Source: IFC acquisition. LF
60 LATINFINANCE

million in the second quarter of 2010. It also increased its loan portfolio to 10.7 billion Mexican pesos from 8.5 billion pesos during the same period last year. Non-performing loans (NPL) increased to 2.02%, however, a slight jump from 1.98% in 2010, when it had one of the lowest NPLs in the Mexican financial system. “We have met all growth expectations that we set in the market since we became public,” adds Diez de Bonilla. “We’re close to year-end and are on the right track to meeting guidance for our portfolio and net income growth which has been a consistent growth story.”

Multilateral
Best Bank – IFC

Taking the Lead

T

to fulfill its role of mobilizing funds that help countries move toward sustainable growth, but in a way that is inclusive, Martelli adds. Perhaps the IFC’s highest profile project financing was the structuring and bidding process for Colombia’s $3 billion Ruta del Sol highway project. Completed this year, the 1,071km road project is the country’s largest, and helped set a benchmark for future concession. It also represented part of the IFC’s expanding program for private public partnerships (PPPs), which helps free resources so that the multilateral can use them elsewhere. “Thanks to the structure, the private sector can foot the bill,” says Martelli. “If we can add the private sector, without direct lending from the IFC, it is a proof of success.” Other projects included the Port of Santos expansion in Brazil, where the IFC helped structure $680 million in financing to help build a new container terminal. The multilateral extended a $97 million loan, while also mobilizing $582 million for the $908 million project through an A-B loan, bringing in six commercial banks. In all, the deal represented the IFC’s largest syndication ever. The IFC has also proven to be an innovator this year after structuring a swap mechanism with Paraguay’s central bank to allow the multilateral to extend local currency loans and help companies raise cheaper and longer-term financing. The idea is to have the central transfer the business to the private sector and deepen the market for guarani loans. It also led a $30 million debt financing to El Salvador’s Fedecredito, backing it with future remittances from Salvadorans who live abroad. Proceeds in turn helped the bank increase consumer, residential and microlending operations. On the environmental front, the IFC extended a $50 million loan and mobilized another $110 million for the construction of Nicargua’s biggest greenfield geothermal power project in over 25 years. The San Jacinto project is expected to provide 20% of the power needs in a country where 70% of the power is generated through fossil fuels. LF

November/December 2011



Latin Finance - November/December 2011

Table of Contents for the Digital Edition of Latin Finance - November/December 2011

Latin Finance - November/December 2011
Contents
Contagion Risk
Mexican Credit
China Investment
Loan Markets
Mexico Banks
Sub-Sovereign Debt
Banks of the Year 2011
Argentina Investor Report
Reversal of Fortunes
Latin Finance - November/December 2011 - Latin Finance - November/December 2011
Latin Finance - November/December 2011 - Cover2
Latin Finance - November/December 2011 - Contents
Latin Finance - November/December 2011 - 2
Latin Finance - November/December 2011 - 3
Latin Finance - November/December 2011 - 4
Latin Finance - November/December 2011 - 5
Latin Finance - November/December 2011 - 6
Latin Finance - November/December 2011 - 7
Latin Finance - November/December 2011 - 8
Latin Finance - November/December 2011 - 9
Latin Finance - November/December 2011 - 10
Latin Finance - November/December 2011 - 11
Latin Finance - November/December 2011 - Contagion Risk
Latin Finance - November/December 2011 - 13
Latin Finance - November/December 2011 - 14
Latin Finance - November/December 2011 - 15
Latin Finance - November/December 2011 - 16
Latin Finance - November/December 2011 - 17
Latin Finance - November/December 2011 - 18
Latin Finance - November/December 2011 - 19
Latin Finance - November/December 2011 - 20
Latin Finance - November/December 2011 - 21
Latin Finance - November/December 2011 - Mexican Credit
Latin Finance - November/December 2011 - 23
Latin Finance - November/December 2011 - 24
Latin Finance - November/December 2011 - 25
Latin Finance - November/December 2011 - China Investment
Latin Finance - November/December 2011 - 27
Latin Finance - November/December 2011 - 28
Latin Finance - November/December 2011 - 29
Latin Finance - November/December 2011 - Loan Markets
Latin Finance - November/December 2011 - 31
Latin Finance - November/December 2011 - 32
Latin Finance - November/December 2011 - 33
Latin Finance - November/December 2011 - Mexico Banks
Latin Finance - November/December 2011 - 35
Latin Finance - November/December 2011 - Sub-Sovereign Debt
Latin Finance - November/December 2011 - 37
Latin Finance - November/December 2011 - Banks of the Year 2011
Latin Finance - November/December 2011 - 39
Latin Finance - November/December 2011 - 40
Latin Finance - November/December 2011 - 41
Latin Finance - November/December 2011 - 42
Latin Finance - November/December 2011 - 43
Latin Finance - November/December 2011 - 44
Latin Finance - November/December 2011 - 45
Latin Finance - November/December 2011 - 46
Latin Finance - November/December 2011 - 47
Latin Finance - November/December 2011 - 48
Latin Finance - November/December 2011 - 49
Latin Finance - November/December 2011 - 50
Latin Finance - November/December 2011 - 51
Latin Finance - November/December 2011 - 52
Latin Finance - November/December 2011 - 53
Latin Finance - November/December 2011 - 54
Latin Finance - November/December 2011 - 55
Latin Finance - November/December 2011 - 56
Latin Finance - November/December 2011 - 57
Latin Finance - November/December 2011 - 58
Latin Finance - November/December 2011 - 59
Latin Finance - November/December 2011 - 60
Latin Finance - November/December 2011 - Argentina Investor Report
Latin Finance - November/December 2011 - 62
Latin Finance - November/December 2011 - 63
Latin Finance - November/December 2011 - Reversal of Fortunes
Latin Finance - November/December 2011 - Cover3
Latin Finance - November/December 2011 - Cover4
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