CF Ficohsa

completed

The proposed investment in Banco Financiera Comercial Hondurena S.A (Banco Ficohsa or the client), a locally-owned Honduran bank, consist of the subscription of Tier I capital for up to $28.5 million in common shares and Tier II for up to $38 million. Ficohsa and IFC hold a strong relationship that began in early 2008, through a senior loan to support housing finance and SME sectors (Investment Number 26394) and a trade line (Investment Number 27341) intended to support the Bank’s international business and country’s trade activities. The proposed investment would enable the Bank to strengthen its balance sheet, by enhancing its capital ratios, and would support its strategic growth for 2011, when business is expected to pick up, and beyond. The Bank will focus its expansion on those sectors that drive economic growth and those with limited funding supply such as SMEs and housing. Banco Ficohsa would open up its common shareholding for first time to external investors. This project is eligible for the IFC Capitalization Fund given its systemic importance evidenced by a 14.8% market share in terms of credit portfolio.