Co-financing agreement signed with BBVA Banco Continental for Peruvian medium-sized business sector

The Andean Development Corporation (CAF) and BBVA Banco Continental signed an agreement to grant joint financing to Peruvian medium-sized companies. The objective of the agreement is to address the credit needs of companies whose sales are under US$20 million annually, preferring those with potential for exploiting the advantages of the free trade agreements that Peru could sign in the near future. All the companies financed must have outstanding characteristics at the level of competitiveness, associativity, innovation, and/or capacity for internationalization, as well as being socially and environmentally responsible.

CAF President & CEO Enrique García said the agreement was important because it achieved CAF’s objective of intensifying support for the Peruvian private productive sector as a way of promoting economic development with equity. As García explained, "with the agreement with BBVA Banco Continental we will finance the growth of promising local companies, fostering the creation of employment and raising the quality of life of the people, while we maintain an appropriate cost and risk scheme."

For his part, BBVA Banco Continental Managing Director José Antonio Colomer said that the signing of the agreement strengthened the bank's commitment to the development of Peru. "One of our main objectives as a financial institution is to promote the progress of all sectors of Peruvian society to meet the challenge of globalization," he added.

This program is possible thanks to the excellent knowledge, expertise and experience that BBVA possesses of the Peruvian medium-sized business sector. Under this co-financing scheme, BBVA will share with CAF some of the best medium-sized companies and will take responsibility for managing the operations. CAF will facilitate supplementary financial resources to BBVA on competitive rates and terms. During the formalization of the agreement, CAF Social and Environmental Development Vice President Claudia Martínez said, "this innovative strategic alliance with a financial institution of world stature would enable CAF to efficiently stimulate the equitable and sustainable growth of Peru."