Incofin IM Announces Sale of Equity Participation in Banco FIE in Bolivia

Incofin IM Announces Sale of Equity Participation in Banco FIE in Bolivia

2016/10/10
Antwerp, 4 October 2016 – Impact investment manager Incofin IM announces that it has realized the exit of its equity investment in Banco FIE to other shareholders of the Bank, resulting in an attractive double-digit return for the two funds under management that had invested. This transaction further validates Incofin IM’s track record of identifying, developing and exiting its equity investments.
 
The first equity investment was made in 2007 when Banco FIE was still a Non-Bank Financial Institution (NBFI) with a loan portfolio of just over USD 100 million. Incofin has supported the organization to become one of the leading financial institutions of Bolivia. Banco FIE manages a loan portfolio of USD 1.2 billion and provides diverse financial products and services to more than 1 million micro and small entrepreneurs in the country through a nationwide network of over 150 branches and 300 customer service points.
 
Under the transaction Impulse Microfinance Investment Fund, a fund advised by Incofin IM, sold its entire participation in the Bank, while Incofin cvso, another fund advised by Incofin IM, sold just under approximately half of its 10.5% stake. This successful exit is another example of Incofin IM’s ability to realize attractive exits for funds under its management. This is the fourth exit realized by Incofin IM since June of 2016.
 
Loïc De Cannière, Managing Director of Incofin IM said: “We are pleased to have been able to assist Banco FIE over these last 9 years; from its transformation process to become a licensed bank to creating value for its stakeholders by balancing financial and social returns. This exit confirms our capacity to deliver the desired social and financial returns of the investors in our funds”.
 
Jos Daniels, Chair of Impulse Investment Fund commented on the transaction: “This exit is testimony to our confidence in the Manager’s capacity and judgement. Despite the illiquidity of the Bolivian equity market, our investment in Banco Fie, which represented the largest equity stake of the fund’s portfolio, passed the exit test highly successfully. Impulse fund is nearing its maturity date and the Incofin team has by now successfully structured and realized exits from all but one of our fund’s equity stakes. The strong track record demonstrated to date provides assurance to investors in the Impulse fund that it will meet investors’ expectations and distribute its targeted returns.”
 
About Incofin IM
Incofin Investment Management (www.incofin.com) manages impact investment funds and is a global leader in rural and agricultural finance. It is an AIFM licensed fund manager, advising and managing 800 M USD of assets. Its flagship funds include Rural Impulse Fund I (2007), Rural Impulse Fund II (2010) and agRIF (2015). It is headquartered in Belgium and has a network of 4 regional offices and representations. It has a team of 45 experienced staff with in-depth knowledge of rural finance and private equity.
 
About Banco FIE
Banco FIE (www.bancofie.com.bo) was founded in 1985 as an NGO, with a social mission focused on meeting the financial demands of the neediest population sectors and promoting the democratization of financial services in Bolivia. In 1998, it first became a regulated entity in the form of a Private Financial Fund, and then became a bank in 2010. Today, Banco FIE operates as a full-service bank, maintaining its firm commitment to contribute to financial inclusion in the country and serving about 20% of customers in the Bolivian financial market. It has more than 150 branches and 300 points of attention, making it the country's second-largest financial network.
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More information on this transaction can be obtained with Geert Peetermans at Incofin IM (geert.peetermans@incofin.com -  T + 32 3 829 25 82).
Information on Incofin IM can be obtained with Loic De Cannière (loic.decanniere@incofin.com – T + 32 3 829 25 62)