Huancayo Box will incorporate as a shareholder the IDB Invest at the latest in August this year. This, within the framework of Law No. 31711 that enables the entry of multilateral organizations to strengthen the assets of municipal savings and credit banks, announced Víctor Valdivia, general manager of Operations and Finance of CMAC Huancayo.
According to Valdivia, in 2020, the multilateral entity entered into a subordinated loan for US$16 million with Caja Huancayo. Subsequently, it signed a private contract for the conversion of this debt into shares with a participation of up to 8.99%.
“The operation we have with IDB Invest is special, although it started as a subordinated debt, it had a convertibility agreement behind it. This (debt) is going to be converted into shares in a very short period, because we are already in the process with the IDB (…) andThe process has already started and should be finishing between June and August of this year”mentioned the representative of Caja Huancayo, during the IV Investor Forum, “Oportunidades Perú 2023” organized by the Lima Stock Exchange.
Among the benefits of the incorporation of IDB Invest is the improvement in the corporate governance of the box, Valdivia mentions. In addition, he adds that “it will allow access to financial solutions, advice and more knowledge that meets the ever-changing demand of the microfinance sector.
In addition, it highlights that the arrival of the multilateral organization will strengthen the operations of the box in areas such as green financing, social and sustainable housing, financing for SMEs and financial inclusion in general.
“It will make a very good incorporation as a partner, it will allow us to improve in many technical and governance aspects,” he remarked.
Source: Larepublica
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