Caja Los Andes agrees purchase of the alternative credit company for S/42 million

The Rural Savings and Credit Fund The Andes announced the signing of a contract with the Savings and Credit Cooperative ABACO Y DIVISO Financiero for the acquisition of 94,054% of the shares of Alternative credit company.

The transaction, which means a step of expansion of Los Andes box In the microfinance sector, it is valued at S/42.5 million without considering the indirect acquisition of the actions that Alternative It maintains in Treasury, as detailed in a act of importance high to the Superintendence of the Securities Market (SMV).

Details the document that the agreement is still subject to compliance with preceding conditions, including the authorization of the Superintendence of Banking, Insurance and AFP (SBS).

With this operation, the Caja Rural Los Andes is screened to reach S/930 million in assets, a network of 129 offices and more than 200,000 clients throughout the country. To date, it records assets for S/679 million and more than 150,000 credit clients and deposits.

“We are proud to continue expanding our presence and bring opportunities to more Peruvians, especially in our rural regions,” said Rosanna Ramos-Velita, president of the Andes Board of Directors.

Recall that in August 2024, the Andes received a capital injection of approximately S/38 million through its international partner Digital Action Translation Fund (ADTX).

Rural boxes in losses

All rural boxes that operate in Peru face a difficult scenario. At the end of December 2024, they registered losses for sixth consecutive year that the S/29 million reached. In the case of Caja Los Andes, it registered a loss of S/4.5 million, which is equivalent to a 536% drop compared to the previous year.

With this acquisition, Caja Los Andes seeks to strengthen its positioning in the microfinance sector and enhance access to credit in rural and entrepreneurial sectors.

RECENTABILITY AND ALTERNATIVE ASSETS

The financial entity in a matter of purchase, Alternative, He was born in 1992 thanks to the initiative of the Lambayeque Chamber of Commerce and Productionin collaboration with the Inter -American Development Bank, with the purpose of promoting small and microenterprise in the region.

In 2001, it began operating as a company of the financial system specialized in small and Microenterpriseunder the supervision of the SBS, with the Lambayeque Chamber of Commerce as the only shareholder.

Over time, its shareholding structure changed with the incorporation of national and international investors. In 2008, the ABACO Savings and Credit Cooperative, Microvest (USA) and Microventures (Italy), were added as partners.

In 2013, Alternative redefined its strategy to focus completely on the rural sector with a triple impact approach. Two years later, in 2015, the Chamber of Commerce of Lambayeque and Microventures left the shareholding, allowing the entry of a Financial Group.

At the end of 2024, the alternative assets They amounted to S/227 million, a reduction of 16.7%, compared to S/272.7 million registered in December 2023. Regarding its profitability, the company reported a net profit of S/0.7 million in 2024, lower than S/ 2.7 million obtained in the previous year.