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IFC Capitalization Fund Provides $172.5 Million Loan to Banco Davivienda of Colombia to Strengthen its Capital


In Washington, D.C.:
Serene Jweied
Phone: +1 (202) 473-8764
E-Mail: sjweied@worldbankgroup.org

In Bogota:
Darcy Crowe
Phone: +571 313 6449
E-mail: dcrowe@ifc.org

Bogotá, Colombia, July 31, 2014— The IFC Capitalization Fund, managed by IFC Asset Management Company, has decided to  provide a $172.5 million loan to Banco Davivienda S.A., the third largest bank in Colombia by assets and loans. The subordinated loan will strengthen Banco Davivienda’s capital base in Colombia and will support the growth of one of IFC’s strategic clients in Latin America.

This is the ninth investment in Latin America and the Caribbean for the IFC Capitalization Fund, a $3 billion fund that was made possible by commitments from IFC and Japan Bank for International Cooperation (JBIC). The loan also bolsters IFC’s long-standing relationship with Banco Davivienda, which started four decades ago and has aided in the continued growth of the Colombian bank.

“This investment strengthens the long-standing partnership between IFC and Banco Davivienda,” said Marcos Brujis, Head of the IFC Capitalization Fund. “We are pleased to support this strategically important bank as it continues to grow and improve access to finance in Colombia.”

IFC’s partnership with Banco Davivienda dates back to 1973 through its relationship with Sociedades Bolivar, one of the leading financial groups in Colombia and the holding group that controls Banco Davivienda. Since then, IFC has extended a series of debt and capital investments in the bank. In 2007, IFC provided financing to support Banco Davivienda’s acquisition of Granbanco (formerly Bancafe), in Colombia.

“This financing will help us improve our overall growth strategy in Colombia and is a new example of our strong partnership with IFC, with whom we have a long-standing relationship,” said Efrain Forero, Banco Davivienda’s chief executive officer.

Banco Davivienda is the third largest bank in Colombia with a consolidated asset base of US$29.8 billion and presence in six countries. Together with its subsidiaries, Davivienda offers a comprehensive portfolio of products that contributes to the financial well-being of more than 5.7 million families and supports the growth of businesses in different sectors of the economy where it is present. In Colombia, Davivienda operates with a network of 576 branches and 1,598 ATMs in 835 municipalities.

Banco Davivienda is currently one of the largest providers of first-time access to financial services in Colombia. Since 2011, it has provided banking services to over one million low-income individuals located in some of the most remote areas of Colombia through the bank’s mobile banking platform, Daviplata, which currently serves over 1.9 million clients. The bank’s strategy is to continue to focus on serving these segments of the population through this platform.


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org

About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. It manages $6.3 billion of capital across six investment funds. For more information, visit www.ifcamc.org

About the IFC Capitalization Fund
The IFC Capitalization Fund is a global equity and subordinated debt fund supported by commitments from IFC and JBIC. It aims to strengthen banks considered vital to the financial system of emerging markets.

About JBIC


JBIC is a policy-based financial institution wholly owned by the Japanese government, which has the objective of contributing to the sound development of Japan and the international economy and society, by conducting financial operation in the following four fields: Promoting the overseas development and securement of resources which are important for Japan; Maintaining and improving the international competitiveness of Japanese industries; Promoting the overseas business having the purpose of preserving the global environment, such as preventing global warming; Preventing disruptions to international financial order or taking appropriate measures with respect to damages caused by such disruption. For more information, visit www.jbic.go.jp/en.
 

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