The process of planning, organizing, and obtaining authorization for The Bank started in June 2005 led by Sergio Gerardo González de la Garza and Gerardo José de la Garza Santos, who have substantial business experience operating through Landus Grupo Inmobiliario (LANDUS) along with Lic. Sergio G. González Lozano. Together , Gerardo de la Garza Santos (Managing Director LANDUS) and his nephew, Sergio Gonzalez de la Garza (Director of LANDUS) own 71% with the remaining shares owned by eight local investors.

IFC’s investment in Banco Amigo serves two purposes: - the loan will provided long term funding for Banco Amigo to scale-up its loan portfolio as it begins grow its loan portfolio and intermediate savings; and equity will allow IFC to be a long term partner and support Banco Amigo’s regional expansion, and the introduction of new products.

17.41 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.24
Equity	7.17

* These investment figures are indicative

Banco Amigo has its head office in Monterrey, Mexico. Address: Padre Mier No. 249, Tercer Piso, Centro Monterrey, N.L. 64000

The proposed project is expected to have a high development impact in the following areas: - Significant Contribution to Economic Development and Financial Intermediation: Creation of a new microfinance institution: Banco Amigo is a newly-created microfinance institution, and while the State of Nuevo Loan has adequate banking services, Mexico has a great need for microfinance institutions to serve the poor and low income populations. New, well-capitalized, microfinance banks should lead to an improved financial infrastructure. - Scaling up microfinance: This project involves scaling up a greenfield microfinance institution by providing it with the necessary equity and debt funding to become profitable and expand operations. If successful, it is expected that this model could be replicated in other countries. - Contribution to Poverty Reduction: Extension of finance to previously underserved groups: Small and micro businesses across continents lack adequate sources of funding. IFC’s investment will result in increasing the availability of financial services to this large, underserved group. Supporting productive small businesses should then stimulate growth, generate employment and reduce poverty.

In addition to its investment, IFC is expected to provide advisory services to strengthen Banco Amigo’s operations, especially in the areas of credit scoring/credit evaluation methodology, training loan officers and the introduction of new products and services. Within five years, it is expected that Banco Amigo will be a strong regional microfinance bank.

This project involves IFC support for the business of microfinance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature of activities supported, the project will be required to:

- Develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the IFC microfinance exclusion list
- Identify qualified persons to manage and implement the procedure
- Demonstrate commitment and resources to implementing the procedure
- Submit a periodic report to IFC as per a format to be provided by IFC