IFC Investment in Grupo Financiero Mifel to Support Smaller Businesses in Mexico

Washington, D.C.,  August 26, 2011—IFC,a member of the World Bank Group, has announced that it will buy up to$25 million of new common shares in Grupo Financiero Mifel, S.A. de C.V.,to support the growth, income distribution, and competitiveness of smallerbusinesses in Mexico.

Small and medium enterprises generate 72 percent of formal sector jobsin Mexico. However, only less than 3 percent of these companies have accessto bank financing. With this transaction, IFC will become a strategic partnerof Grupo Mifel, the Mexican-owned financial group focused on local smalland medium enterprises in the manufacturing, agribusiness, and constructionindustries, enabling it to increase lending to small and midsize businessowners, help expand their businesses, and create employment opportunities.

Daniel Becker Feldman, CEO and main shareholder of Grupo Financiero Mifel,said, “This transaction will help  us access a new type of institutionalinvestor to support the loan portfolio expansion for our Mexican smalland medium enterprises in sectors such as manufacturing and agribusiness.  This investment also will enhance our position in the financialsector.”

The investment in Grupo Financiero Mifel shows IFC’s catalytic role inmobilizing resources and coordinating efforts of development finance institutionsand the private sector to help fill financing gaps caused by the retrenchmentof commercial lenders and increasingly cautious investors.

“IFC’s support of Grupo Financiero Mifel advances efforts to serve keyeconomic sectors such as small and medium enterprises with limited accessto finance,” said Roberto Albisetti, IFC Senior Manager for Mexico andCentral America. “This new transaction is an indication of our continuouscommitment to help strengthen Mexico’s financial system.”

IFC’s strategy in Mexico is focused on promoting access to finance forlow-income individuals and microenterprises, supporting energy-efficientprojects, and developing infrastructure to strengthen competitiveness.

About Grupo Financiero Mifel

Grupo Financiero Mifel is a non-public regulated, deposit-taking, financialgroup formally founded in 1993. It offers a wide range of financial services,including commercial banking, factoring, leasing, and mutual fund managementthrough its four subsidiaries, Arrendadora Mifel, Banca Mifel, FactorajeMifel, and Operadora Mifel. As of December 2010, Grupo Financiero Mifelhad $3 billion in total assets and about 800 employees.  For moreinformation, visit

www.mifel.com.mx

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About IFC

IFC, a member of the World Bank Group, is the largest global developmentinstitution focused exclusively on the private sector. We help developingcountries achieve sustainable growth by financing investment, providingadvisory services to businesses and governments, and mobilizing capitalin the international financial markets. In fiscal 2011, amid economic uncertaintyacross the globe, we helped our clients create jobs, strengthen environmentalperformance, and contribute to their local communities—all while drivingour investments to an all-time high of nearly $19 billion. For more information,visit

www.ifc.org

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