An MFI bought on the stock market

Source : Gestion

Compartamos, the first Microfinance Institution (MFI) in the world to be listed on the stock market, has just finalised the purchase of its Peruvian equivalent, Financiera Créditos Arequipa (Financiera Crear). What is original about this transaction is that the MFI purchased is also listed on the Lima Stock Market, while Compartamos, originally from Mexico, is on the Mexican stock market and has two million customers.

“Peru is, and continues to be, a country with lots of opportunities and strong growth potential on the continent. It has a stable financial market and a mature microfinance,” affirms one of Compartamos’s top managers.

Financiera Crear was created in 1992 by a Peruvian NGO and became a non-banking credit institution in 1998. It is not known whether the 63 million dollars paid will be reinvested to serve micro-entrepreneurs or will benefit the MFI’s founders. When Compartamos itself was listed on the stock market, it made its shareholders millionaires, creating quite a controversy about MFIs’ presence on the stock market.