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IDB signs $100 million senior A/B Loan for BBVA Banco Continental, S.A. in Perú

The Inter-American Development Bank announced today the signing of a US$100 million senior A/B loan to BBVA Banco Continental, S.A. in Peru.

The loan constitutes one component of a long-term financing facility approved this past Wednesday by the IDB for the financial institution, to provide comprehensive support for mortgage origination. The second portion, a US$ 30 million subordinated loan is expected to be signed shortly.

The loan was signed by the General Manager; Mr. Jaime Saenz de Tejada Pulido and the Finance Manager; Mr. Eduardo Avila Zaragoza, both representatives of  Banco Continental, and by the Manager of the Private Sector; Mr. Hiroshi Toyoda.

“This financing will allow us to maintain a strong balance sheet and an efficient funding platform to advance our future growth that will result from the significant expansion of mortgage assets to our portfolio. At the same time to demonstrate the clear support of the IDB to work with a dynamic and solvent institution as ours, which is fundamentally involved in the development of  Peru,” said Mr. Avila Zaragoza.

Hans Schulz, head of the Financial Markets Team of the IDB’s Private Sector Department said: “This transaction represents the first project under the extended mandate and signals our new strategy to support the development of financial markets by structuring solutions tailored to the need of each client. It is noteworthy to also mention that the closing of the transaction occurred in less than two months from the mandate, demonstrating the important improvements to IDB’s responsiveness.”

IDB project team leader Daniela Carrera-Marquis added: “A central idea behind IDB’s strategy in the region’s mortgage market is to promote an overall increase in affordable housing finance, thus reducing the currently existing housing gap. The project represents an important synergy between two institutions that play a key role in the region. The project  benefits from jointly concerted efforts by representatives of Banco Continental, specially Gonzalo Camargo and his team,  as well as of the IDB, George Rogers, Giannina Nunez and Florencia Attademo-Hirt.”

Banco Continental is the second largest commercial bank in Perú. As of June 2006, had total assets of US$ 5.4 billion and total deposits of US$ 4.2 billion. It has built an extensive network throughout the country with 215 branches, 332 ATMs and 2,774 employees. Banco Continental has been recently assigned an international rating of BBB for long term local currency and BBB- for long term foreign currency by Fitch Ratings.

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