Banco Popular

completed

The project consists of an equity investment of up to $1.5 million to Popular Asociación y Préstamo (Popular). Popular is a savings and loans association active in the Honduran microfinance sector. The purpose of the project is to provide funding in the form of equity in order to assist Popular in its transformation to a commercial bank as well as to expand its micro lending operations. The Team will explore the possibility of a partial credit guarantee (PCG), whereby Honduran commercial banks would provide up to $4 million equivalent in Lempiras with an IFC PCG at a currently unspecified percentage. The local currency funding in Lempiras would be used to partially match the currency of Popular’s funding with its lending activities. This, in turn, would allow Popular to expand and enhance its services to low-income population in Honduras. In addition, IFC will consider providing technical assistance (TA) in order to support the institution in its transformation to a regulated microfinance bank.