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Factorline expects 18% loan growth this year(BNamericas.com Via Thomson Dialog NewsEdge) Chilean factoring firm Factorline expects to grow loans 18% to US$1bn in 2007 and expand the scope of services lent thanks to a recent agreement inked with IFC, Factorline chairman Jorge Sabag told BNamericas. IFC recently announced it would invest US$15mn for about an 18% stake in Factorline, a transaction expected to close by the end of this month. Coupled with that, a 2.2bn-peso (US$4.28mn) capital increase to be carried out by existing shareholders by end-September will lift the company's capital base to about US$46mn, Sabag said. The IFC investment will help Factorline keep its focus on underserved SMEs that bill 30-40mn pesos annually and expand its number of customers, Sabag said. "We believe there are some 90,000 potential SME customers out there so there is a lot of room to grow," he said. Factorline is the largest among non-bank controlled factoring firms in Chile with total assets of US$200mn and a 3,000-customer base. Sabag also said the company would look to boost its consumer and car loan businesses as well as enter the microloan segment next year. Factorline is 68%-controlled by the local Mass group and has posted an average ROE of over 30% for the last three years. Copyright 2006 BNamericas.com |