79M out of 85M shares of Financiera Independencia subscribed

By Nagesh Narayana
Microfinance Focus, Jan. 21, 2010: Financiera Independencia, a Mexican microfinance lender of personal loans to lower income segment individuals, has announced that on January 15, 2010 it completed the Rights Offering Process of the 85,000,000 share capital increase first announced on November 30, 2010. A total of 79,904,401 shares were subscribed at the issue price of Ps.10 ($.78) per share, it said.
The remaining 5,095,599 shares not yet subscribed will be offered for subscription to all of the Company’s shareholders in a Second Round of Rights Offering Process at the issue price of Ps.10 ($.78) per share. Under the Second Round Process, the Company’s shareholders shall have the right to subscribe and pay, additionally and proportionally among them, as many shares as it may be necessary in order to exercise a right to increase their equity holding percentage proportionally. The shares to be subscribed during the Second Round Process shall be subscribed and paid for no later than February 5, 2010, it added.

Proceeds of the issue will be used to finance the Ps.530 million ($42 million) acquisition of Financiera Finsol, the second largest group lending microfinance institution in Mexico, and group of related entities, including Finsol Brazil, as announced on November 30th, 2009. Proceeds will also be used to provide up to Ps.300 million ($24 million) of capital to strengthen the balance sheets of the companies to be acquired.

As of September 30, 2009, Independencia had a total outstanding loan balance of Ps.4,793.1 million ($377.5 million), operated 198 offices in 143 cities throughout 31 of Mexico’s 32 federal entities and had a total labor force of 9,586 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol “FINDEP”.

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