PE-L1118 : Banco Interamericano de Finanzas (BIF) - Subdebt Facility

The proposed transaction is based on the Subordinated Loan Facility LACC (RG-X1088) approved by the Board in August 2010 and consists of a subordinated loan (Tier II Capital under the requirements of the local regulation) for an approximate amount of US$20 millino for Banco Interamericano de Finanzas S.A. The facility presents a triple objective: (i) to strenghten the solvency of the bank and to improve the efficiency of the use of capital by lending a subordinated loan that qualifies as a Tier II under Peruvian regulation; (ii) to improve the liquidity and the exchange rate capability of the bank; and (iii) finance the development of the housing package, expecting to make a positive economic and social impact due to the incipient availability of this package in the Peruvian financing system and the housing defficit which still exists in the country.