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Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 26027
Company nameBanco de Finanzas SA
Sector1Commercial Banking - Housing Finance
Environmental categoryFI
Date SPI disclosedMay 31, 2007
Projected board dateJuly 2, 2007
Previous EventsInvested: December 29, 2008
Signed: September 28, 2007
Approved: July 24, 2007
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
Banco de Finanzas (BdF or the Bank) was founded in 1992 as a privately-held bank. With assets of $386 million and equity of $37 million as of March 2007, BdF is the leader in housing loans with a 38% market share, ranking 4th and 6th among private banks in terms of total loans and total assets, respectively. The Bank’s strategy is focused on retail and SME lending. BdF provides mostly mortgage and consumer lending. Mortgage lending is mostly residential and on a national scale. BdF is mostly a lending institution.

The project consists of a:

- a $15 million senior secured loan BdF to support the expansion of the middle to low income mortgage market in Nicaragua;
- a MSME loan of up to $5 million, and
- a trade finance Line of $3 million.