BIF is the sixth largest commercial bank in Peru with over $1.4 billion in assets and $93 million in equity. The Bank, which started out with a focus on foreign trade and corporate banking, is expanding into SME and consumer businesses. Established in 1991, BIF is wholly owned by the Spanish Group Fierro through Grupo Bancario Ignacio Fierro (“Grupo IF”) via two companies incorporated in Uruguay (Landay S.A. (50.05%) and Britton S.A. (49.95%)).

The proposed investment consists of a debt package for up to $30 million including a parallel loan to support the Bank’s growth.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

BIF is headquartered in Lima and has 47 branches and 72 ATMs mainly concentrated in Lima with an expansion plan throughout the country.

-Increased access to finance: Without the Project, it would be much harder for BIF to raise the amount of medium-term funding it is seeking from diversified sources and at competitive market conditions. If fully deployed, the loan could help increase BIF SME loan portfolio by 30% on average annually during the life of the project from a base line of US$185 million in 2009. Wealth derived from the financing activity made possible by the investment would help reduce the income gap prevailing in Peru.

- Enhance access to IFI/DFI financing: IFC will expand BIF's relationships with IFI/DFIs, which would otherwise take longer for the Bank to establish. IFC's stamp of approval is important to get the necessary commitments from parallel lenders.

This project involves IFC support for a commercial bank in Peru to accelerate the growth of its SME portfolio and has been classified as a Category FI project. Under an existing project (#25717), the client was required to implement a SEMS to ensure that its sub-borrowers comply with the IFC FI Exclusion List and the environmental and social laws of Peru. The client has implemented the SEMS and submitted an environmental and social report. During the appraisal, IFC will review the client''s portfolio to confirm the applicable environmental and social requirements and assess the client''s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions. The project will be required to: maintain or upgrade existing Social & Environmental Management System (SEMS); apply the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and continue to submit a periodic report to IFC as per a format to be provided by IFC.