At the final stage of a merge process, CREDICENTRO S.A.E.C.A. signed a USD 5 million financing loan with Enabling Microfinance Fund.
This agreement will allow CREDICENTRO the access of funds at more competitive rates and terms and trought this, to diversify its base of funding. The funds are given to SMES, supporting the paraguayan economy on this times, betting firmly on the growth & modernization of SMES and, above all, the country.
Victor Vazquez, president of CREDICENTRO sayd “ This agreement is very important for us. We are ending an historical transaction in Paraguay as it is the first merge between three companies simultaneously in the country and probably in the región. Beyond that, we are in an particular situation at a global level and for that, we are grateful to ENABLING QAPITAL team for their support.With those funds we will keep supporting our clients and trought them, help for the economy reactivation.”
Miguel Vazquez also mentionned “As it was mentionned, it is a very special momento fo rus. After 5 months of hard working, we are closing a merge between CREDICENTRO, PASFIN S.A.E.C.A. and LCR S.A.E.C.A. During this process, we achieved significant landmarks on this companie’s history as a G. 65.000 millions (Aprox. USD 9.5 millions) bond issue what show us the local market trust on the project. We’ve been benefited with a credit line from the AFD (Agencia Financiera de Desarrollo, public second floor institution) for G. 50.000 millions (Aprox. USD 9millions) at 5 years. We also increased the authorized capital to G. 700.000 millions (Aprox. USD 100 millions) and converted preferred stock into ordinary ones. It was such a success that we reoppened the opportunity to those shareholders that couldn’t convert in the first time.
All this show us that our shareholders and the local market are trusting in the model and the management, and the fact that this is reaffirmed by the international market encourages us to continue with even more strength. Over the past two years, CREDICENTRO & PASFIN have been working in increasing their position on the international market. Today, we are looking to become an alternative for foreign investors and funds in their entrance in the country & for the contribution on the SME’s segment, looking for a positive impact in their economies as well as the financial inclusion and formalization of this segment in our country. This is the first post fusion operation, and we have working in 3 more that we want to achieve on the short term.”
Agustin Villalba, Latin América Regional manager of ENABLING QAPITAL mentionned: “We understand the importance of providing financing to SMEs, taking into account their importance in the paraguayan economy. We are very enthousiastic with the Credicentro’s merge Project, are sure that it would be successfull and will accentuate the financial inclusion of thousands of families, helping them to improve the quality of life”.
CREDICENTRO: With 36 years in the market as a non banking financial institution, foccused on SME’s. Motivated by hardworkin and growing will, they have build new challenges and achiving many goals. Just ended a merge process with 2 other companies, PASFIN S.A.E.C.A. & LCR S.A.E.C.A. With the merge, their assets reach USD 200 millions, USD 70 millions in equity and more than 76.000 clients with big invesments in technology systems to improve efficiency.
ENABLING QAPITAL Ltd. (EQ): the Enabling Microfinance Fund was founded in 2008 as an instrument to catalyse access to capital where it is needed most and to promote financial inclusion to people in developing economies currently overlooked by the financial system. People looking for opportunities, for access to small loans, for skills and the formalisation of their work environment. As advisor of Enabling Microfinance Fund (EMF), main objectives are to create financial, social and ambiental positive impacts for our partners and clients. And, at the same time, have an attractive financial and social return for investors. The team has an unique combination of experiences from many sub sectors: microfinances, inclusive finances, clean energy, climate risks, medical assistance, education, etc. EQ has global teams based in Switzerland, Liechtenstein, Africa, Central Asia, East Asia and Latinamerica.