Microfinance Focus, October 3, 2011: IFC Capitalization Fund signed agreements today to invest $70 million in Banco Financiera Comercial Hondurena, S.A. (Ficohsa), a leading commercial bank in Honduras, to support lending to the country’s small and medium enterprises.

IFC Capitalization Fund will invest $32 million in equity and $38 million in subordinated debt, providing long-term capital resources to Ficosha for its capitalization and expansion plans.

Camilo Atala, Ficohsa CEO and Chairman, said: “IFC’s $70 million to support Banco Ficohsa’s capital base will strengthen our capacity to support small and medium enterprises in Honduras as well as large projects that are essential for the country’s economic and social development." He added: "Ficohsa is a leader in sustainability and will continue supporting socially and environmentally sustainable development.”

Ficohsa is a longstanding client of IFC since 2007. IFC provided a $20 million loan to support lending for housing finance and small and medium enterprises and a $25 million to support the bank’s import and export finance activity. In addition, IFC has provided advisory services to help strengthen Ficohsa’s corporate governance and lending operations.

Banco Financiera Comercial Hondurena SA ( Ficohsa) is a Honduras-based financial institution primarily engaged in the banking sector. The Bank’s services and products include saving accounts, debit and credit cards, consumer and commercial loans, local and international factoring and tax collection, among others. In cooperation with such companies as Royal Bank of Canada, Wachovia Bank, Banorte, Unicredit and others, Banco Ficohsa has coverage in Europe and America.