ProCredit Holding AG & Co. KGaA (ProCredit Holding) today announced the successful completion of the sale of Banco PyME Los Andes ProCredit S.A. in Bolivia to Banco Mercantil Santa Cruz S.A. (BMSC).
Under the terms of the transaction, BMSC has acquired 100% of Banco PyME Los Andes ProCredit S.A. from ProCredit Holding. All regulatory approvals for the transaction have been obtained.
Dr. Gabriel Schor, Member of the Management Board of ProCredit Holding: “We are pleased that we have reached this agreement with Banco Mercantil Santa Cruz. Since the foundation of the institution in 1992, we played a pioneering role in serving small and medium-sized enterprises (SMEs) in Bolivia. Today Banco PyME Los Andes ProCredit is a leading partner for enterprises in Bolivia. We are very confident that the new ownership structure will offer excellent prospects for our clients and staff. The transaction follows our strategic review of selected markets in South America and further sharpens our business model as ‘Hausbank’ for SMEs with a focus on South Eastern and Eastern Europe.”
The transaction results in a positive capital impact for the ProCredit group, increasing its Common Equity Tier 1 capital ratio (fully loaded) to 12.3% as of 30 September 2016, adjusted for the positive effect of the capital increase of EUR 31.9 million of ProCredit Holding in November 2016 (assuming regulatory recognition) and of the sale of Banco PyME Los Andes ProCredit S.A. in Bolivia. The closing of the sale results in a release of the translation reserve, an extraordinary positive earnings impact to be reflected in the group’s Q4 2016 financial statements.
As a profitable, development-oriented commercial banking group for small and medium-sized enterprises (SMEs), the ProCredit group mainly operates in the attractive and growing banking markets of South Eastern and Eastern Europe. The group is headquartered in Frankfurt/Main and is also active in Germany and South America. The group has a proven track record of consistently high loan portfolio quality and has been profitable every year since its creation as a banking group in 2003.
From 2013 to 2015, the ProCredit group increased its return on average equity (RoAE) from 7.7% to 10.5%. As of 30 September 2016, the group’s total assets amounted to EUR 6.0 billion; the total outstanding loan volume was EUR 3.6 billion and customer deposits stood at EUR 3.3 billion.
About the ProCredit Group
ProCredit Holding AG & Co. KGaA, headquartered in Frankfurt am Main, Germany, is the parent company of the international ProCredit group, comprising banks with a focus on South Eastern and Eastern Europe that have specialised in serving SMEs. In addition to this strong regional presence, the group also operates in Germany and South America. The core shareholders of ProCredit Holding AG & Co. KGaA are the strategic investors Zeitinger Invest and ProCredit Staff Invest (comprising investment vehicles for ProCredit staff members), the Dutch DOEN Foundation, KfW and the IFC (World Bank Group). ProCredit Holding AG & Co. KGaA is supervised, on a consolidated basis, as the superordinated company of the ProCredit group pursuant to the German Banking Act by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and by the Deutsche Bundesbank. For additional information, visit: www.procredit-holding.com.
Andrea Kaufmann, Group Communications, ProCredit Holding, Tel: +49 69 95 14 37 138, e-mail: Andrea.Kaufmann@procredit-group.com