B. Continental

completed

The project involves an IFC financing package of up to $130 million equivalent to BBVA Banco Continental S.A. (the Bank or the Continental), one of Peru’s leading financial institutions. The project would consist of: - a senior loan of up to $100 million (or its equivalent in Peruvian Soles or PEN) with the objective of supporting an expansion of the Bank’s residential mortgage lending operations in Peru; and- a $30 million credit facility to be used to develop the Bank’s sustainable lending portfolio, particularly in the areas of supply chain (forestry and timber) and energy efficiency. Continental is the second-largest commercial bank in Peru, offering a wide range of banking services to its more than 200,000 clients. As of March 2006, Continental had a total of 25.26% of the assets of the Peruvian banking system, 26.38% of loans and 24.02% of deposits. The Bank services its clients through a network of 215 branches, 3,023 employees and 336 ATMs.The Bank views the growth of its mortgage operations as one of its strategic priorities and has been marketing this product actively over the last few years. IFC’s investment would help support the bank’s growth strategy by matching the growing asset maturity with a long term financing facility in the same currency.