The Fierro family, controlled today by Guillermo Fierro, founded an industrial family group (Grupo Fierro) in the 1940s. Grupo Fierro employs about 10,000 full-time employees in 12 countries. In Peru, Grupo Fierro’s economic group controls 10 companies. Grupo Fierro founded its financial arm (Grupo Bancario IF or the Group) as a result of its success and expansion of its industrial operations in a number of Latin American countries. BIF is controlled by Grupo Bancario IF. Grupo Bancario IF initiated its banking operations in the 1960’s and currently controls six banks located in Venezuela, Peru, Ecuador, Guatemala, Curacao, and in the US. The Group delivers a wide array of products and services in the areas of retail and corporate banking.

IFC will invest $18 million in subordinated debt.

18.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	18.0
Equity

* These investment figures are indicative

BIF is headquartered in Lima and has over 32 branches in and around Lima.

The proposed investment would: - Provide adequate long-term financing to strengthen BIF’s capitalization for its continued growth; - Support the growth of BIF and its efforts to diversify products and services offered in a market that is highly concentrated, thus providing alternative financing sources to individuals; - Assist in expanding the available offering of financial products and services to the commercial sector, more importantly those that are trade and export related; - Help develop and strengthen an additional market player (though smaller) in the retail banking sector, especially for mortgages; and - Increase banking penetration rates within Peru.

Through the provision of long-term financing to strengthen BIF’s capitalization, IFC will enable the Bank to grow and thereby support the Bank’s efforts in providing alternative financing sources to individuals.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed BIF''s portfolio for types of transactions, size, tenor and industry sectors and determined the Applicable Requirements based on an analysis of the potential social and environmental risks associated with BIF''s portfolio and considering IFC’s investment. The Applicable Requirements are:

- The IFC FI Exclusion List; and
- The applicable Peruvian National Social and Environmental Laws and regulations.

IFC also reviewed BIF’s existing social and environmental risk management procedures and capacity.

Based on the Applicable Requirements and BIF''s procedure and capacity review, the project will be required to:

- Commit to an SEMS Plan detailing time bound actions/enhancements related to the establishment of a Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC.
- Identify responsible, qualified persons to manage and implement the SEMS.
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Requirements.
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis.
- Submit a periodic report to IFC as per a format to be provided by IFC.