IDB Invest, a member of the IDB Group, provided a loan in local currency equivalent to $16 million to the Caja Municipal de Ahorro y Crédito de Huancayo (Caja Huancayo).

The deal, with a tenor of seven years, aims to consolidate regulatory capital to support the growth and consolidation of Caja Huancayo in the Peruvian microfinance industry. Additionally, it will help implement best practices in corporate governance to consolidate its competitive position in the market.

During the last decade, Peru has been a global leader for its positive business environment in microfinance, according to the Global Microscope by The Economist Intelligence Unit.

In the future, the subordinated loan could be modified so that the debt is converted into common shares, subject to obtaining corporate and regulatory approvals.

This operation potentially contributes to five United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10) and Responsible Consumption and Production (SDG 12).

About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Caja Huancayo
Caja Huancayo is one of the leading entities of the Municipal Savings and Credit System (CMAC) of Peru. It has a strong competitive position, not only among the savings banks but also in the Peruvian microfinance industry. With 32 years in operation, Caja Huancayo continues to grow in a sustainable way, positioning itself as a solid company with a strong brand presence in microfinancing. It currently has 174 offices distributed nationwide and more than one million five hundred thousand clients (as of September 2020)