Credivalores debuts on Colombia’s capital markets
Credivalores, a Colombian non-banking financial institution, has made its first bond issuance on local markets after the country’s Financial Superintendence (FNG) approved the issuance.
Credivalores is one of Colombia’s leading lenders to consumers, with more than 17 years of experience in the financial sector, more than 11 billion pesos ($2.83 billion) of loans disbursed to date.
The financial firm has a managed portfolio of $1.7 trillion pesos ($438 billion, and more than 847,000 clients in nearly 900 municipalities.
The company has strengthened its digital transformation strategy over the last two years, with the goal of strengthening financial inclusion and bring digitalization to remote areas of Colombia, in order to provide more opportunities for people.
The bond issue, which is rated 'AA (col)' by Fitch Ratings, will enable the company to support the growth of its operations in Colombia by offering consumer loans to the basic segments of the population.
The bond issue will be for up to 160 billion pesos ($41.2 million) with a term of three years at a fixed rate, according to the conditions approved by the FNG, which will provide a partial guarantee of up to 70% of the principal and interest of the issue.
With this operation, Credivalores seeks to continue diversifying its funding sources, which historically have included international capital markets, through bond issues under the 144 A / Reg S format for $625 million, commercial paper issues in Reg S format for $392 million, and the banking market through loans, and with local banks and multilaterals for more than $280 million.
"We have cultivated strong and long-standing relationships with local and international financial institutions, multilateral agencies and institutional and private banking investors who have consistently demonstrated their confidence in our business model and financial management by remaining as sources of recurring funding for the company,” David Seinjet, Credivalores' president, said.
“Through our diversified funding sources, we have raised more than $1.3 billion to support the growth of our portfolio and our business. With our debut in the local capital market, we expect to continue diversifying our funding sources, supporting our clients and promoting financial inclusion in our country," he added.
In the midst of the challenging context that the last two years have brought, Credivalores has managed to maintain access to various national and international funding sources, which have allowed it to achieve annual growth of 21.3% in its loan portfolio between 2019 and 2020.
As part of the digital transformation strategy, Credivalores now makes more than 69% of its loans through digital channels, thus managing to consolidate an offer in line with its target market, where the agility and simplicity of the process are pillars of its growth dynamics.
Credivalores was advised on the issuance by local law firm Muñoz Aya, with a team led by Edgar Muñoz.
The European Commission’s approval of the copyright directive in April threw more gas on the fire. In a few years, the internet has become – among other things – the main market fo...
The long-serving boss of Cobepa, Jean-Marie Laurent Josi talks about the business model of a Belgian investment firm that is trusted by major European families, one which marries t...
Since the last half of 2008, it is no longer possible to conceal the term ‘crisis’. New paradigms have become apparent and structural changes are predicted. Indeed mar...