On September 7th, 2009 CARE announced the sale of its shares in Financiera EDYFICAR to Banco de Crédito del Perú. The sale represents a significant accomplishment for CARE, which founded EDYFICAR 11 years ago. The EDU congratulates all those who worked to help build EDYFICAR into a sustainable financial services provider reaching over 195,000 low-income entrepreneurs and households across the country. Read the full press release below.
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BANCO DE CREDITO DEL PERU TO ACQUIRE FINANCIERA EDYFICAR
LIMA, Peru (Sept. 7, 2009) - CARE and Banco de Crédito del Perú today announced an agreement has been reached for Banco de Crédito del Perú, Peru’s oldest and largest financial institution, to acquire CARE’s majority stake in Financiera EDYFICAR. Founded by CARE 11 years ago, EDYFICAR has grown to become Peru’s second-largest microfinance institution by number of clients, serving over 195,000 micro-entrepreneurs.
This agreement will mean no changes to EDYFICAR’s business. EDYFICAR will continue as an independent entity, preserving its business model, its brand and personnel. It will continue to provide financial services to the same lower-income segment of the population of Peru.
“We firmly believe EDYFICAR is a success story in its market segment and we want to provide the capital, funding and technology for it to continue growing beyond its current capabilities and in implementing its strategic plan.” said Walter Bayly, CEO of Banco de Crédito del Perú, who also emphasized, “We want to learn from the best in microfinance, and the best are all those who are part of EDYFICAR’s team.”
The acquisition reflects Banco de Crédito del Perú’s strategy to lead all segments of retail banking in Peru. It is also in line with its commitment to contribute to increasing access to banking services in the country. EDYFICAR and Banco de Crédito del Perú’s loan portfolios are absolutely complementary, so there will be no changes either for Banco de Crédito del Perú’s strategy or its loan offers for small companies.
"A true measure of success for a poverty-fighting program is when our help is no longer needed to support it. EDYFICAR, with Banco de Crédito del Perú’s backing, possesses the ability to sustain itself and its mission without non-profit support, enabling CARE to deploy even more resources to fight poverty,” says Dr. Helene Gayle, president and CEO of CARE.
“EDYFICAR will be able to serve more low-income Peruvians, and CARE can reinvest the proceeds from the sale to expand our poverty-fighting programs in Peru and around the world. This is good for EDYFICAR, good for microfinance and good for the global fight against poverty.”
As the social mission of EDYFICAR continues, CARE will invest proceeds in to three key areas:
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Continuing to impact poverty and social exclusion in Peru. Proceeds will provide long-term support to programs that fight poverty and address gender inequities across the poorest regions of Peru, where CARE has strong ties to communities.
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Expanding microfinance globally. Proceeds will also go toward expanding microfinance and financial services more broadly for poor people around the world, particularly in sub-Saharan Africa where the unmet need is greatest.
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Serving more women and girls. Proceeds of the sale will also enable CARE to bolster programming that reaches marginalized women and girls around the world with education, maternal health care and access to financial services.
“In selling our shares of EDYFICAR, CARE sought not only a fair financial offer but also a commitment to the social mission that made EDYFICAR successful,” says Milo Stanojevich, CARE’s director in Peru. “This agreement is an opportunity for CARE to make an even greater contribution to the fight against poverty in Peru and other parts of the world in great need. We are proud of EDYFICAR’s accomplishments, and look forward to observing its continued success.”
Closing of the transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to occur in the coming weeks.
About EDYFICAR
Financiera EDYFICAR is a leading microfinance institution headquartered in Lima, Peru with a loan portfolio of approximately $210 million as of July 2009. EDYFICAR became a licensed financiera in 2008 after being first established as an EDPYME in 1998. Today, EDYFICAR has 1,170 employees and serves over 195,000 clients across 13 regions of Peru. In 2008, EDYFICAR was ranked ninth among microfinance institutions in Latin America by the Inter-American Development Bank.
About CARE
CARE fights root causes of poverty in the world’s poorest communities. In nearly 70 countries, CARE places special focus on working alongside poor women because, equipped with the proper resources, women have the power to help whole families and entire communities escape poverty. In Peru, CARE tackles poverty and social exclusion, contributing significantly to national priorities in nutrition, education, gender equity, maternal and child health, HIV and TB, water and sanitation, economic development and climate change. CARE projects in Peru benefit more than 500,000 of the poorest people in the country.
About BANCO DE CRÉDITO DEL PERÚ
Banco de Crédito del Perú is the major financial institution of the Peruvian financial system. Established in 1889, it has a well-recognized history and healthy tradition as a depositary and resources provider of 120 years. El Banco de Crédito del Perú leads the Peruvian banking system with 32% of the loans and 36% of the deposits as of June 2009. Banco de Crédito del Perú’s track record and leadership have been recognized multiple times by the most prestigious awards and rating agencies, including being named 2008 “Bank of the Year” in Peru by The Banker and Latin Finance Magazines.
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