Impact Investor Incofin has just become one of the new shareholders of the biggest microfinance player in Honduras.
Institutional investors IFC and CABEI (BCIE) and impact investor Bamboo Capital Partners (“Bamboo”) are selling their full participation in Banco Popular (together almost 65% of the total shares). Their shares are being taken over by new shareholders Incofin and Triple Jump (through ASN Microkredietfonds) while existing shareholders BIO and FMO increase their positions.
BIO, FMO, CABEI and IFC have been Banco Popular’s investors since 2007. Together with Bamboo in 2012, they have played a key role in attracting both local and international funding that has fostered the- microfinance bank’s expansion in recent years.
Today, Banco Popular is the leading microfinance institution in Honduras with 60,000 clients and a consistent profitability. During the last years the bank expanded to rural areas, where the need for financial services and credit for agricultural enterprises is more critical. This strategy will be fostered with the new shareholders as well.
A significant portion of the Honduran population remains excluded from key financial services. Despite their critical role in the economy, small businesses remain excluded or underserved in the Honduran market, especially in rural areas. Banco Popular’s mission fits into the fund strategy of Incofin’s agRIF.
Besides a rural expansion, the bank is at the beginning of a digital transformation. The bank is already implementing amongst other initiatives digital and mobile tools that facilitate data collection during the loan origination. Further digitization is scheduled for the coming years.
Jose Enciso, Head of Private Equity Latin America of Incofin is excited about the investment in Banco Popular: “I’m very happy about this entry in one of the most successful financial inclusion institutions in Central America and to continue the excellent work of its management and current shareholders. This once again demonstrates Incofin’s commitment to the region and to this critical impact sector.”