Credicorp Ltd. Announces that One of Its Subsidiaries Offers to Purchase 100% of Credicorp Capital Client’s Investments in the 'Credicorp Capital Factoring Dólares ' and 'Credicorp Capital Factoring Soles' Funds
Rhea-AI Summary
Credicorp (NYSE: BAP) announced that its subsidiary Credicorp Capital will purchase 100% of client investments in two funds: Credicorp Capital Factoring Dólares FMIV and Factoring Soles FMIV. These funds were affected by regulatory actions against Sartor, a Chilean third-party fund manager. The purchase, executed through Atlantic Security Holding (ASHC), will cover up to US$125.3 million in investment value.
The Chilean Financial Market Commission (CMF) suspended all Sartor-managed funds and later revoked Sartor's operating authorization, ordering the liquidation of all its funds. Credicorp Capital commits to acquiring the investment units from clients within 45 days, protecting them from uncertainties in Sartor's liquidation process. Credicorp expects partial fund recovery and will provide updates as available.
Positive
- Protection of client investments worth US$125.3 million
- Swift response to protect investor interests with 45-day buyback commitment
- Potential for partial fund recovery through legal actions
Negative
- Financial exposure of up to US$125.3 million
- Uncertain recovery amount from Sartor's liquidation
- Legal costs associated with fund recovery efforts
News Market Reaction – BAP
In the trading session that priced this news, BAP gained 1.74%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Lima, Dec. 30, 2024 (GLOBE NEWSWIRE) -- LIMA, PERU, December 30, 2024 – Credicorp Ltd. (“Credicorp”) (NYSE: BAP | BVL: BAP), the leading financial services holding company in Peru with a presence in Chile, Colombia, Bolivia, and Panama, announced today that its subsidiary Credicorp Capital S.A. Sociedad Administradora de Fondos (“Credicorp Capital”), has notified its clients that it has offered to purchase
To facilitate the purchase process, Credicorp Capital will execute participation transfer agreements through its affiliate Atlantic Security Holding Corporation (ASHC), covering up to US
As publicly disclosed, the Chilean Financial Market Commission (CMF) recently ordered the suspension of contributions, as well as redemptions and payments, of all funds managed by Sartor, which included the Credicorp Capital Factoring Soles FMIV and Credicorp Capital Factoring Dólares FMIV funds. Following a complaint filed by Credicorp Capital, the CMF issued a resolution on December 20, 2024, by which it (i) revoked Sartor’s authorization to operate, and (ii) ordered the liquidation of all funds under Sartor’s management.
In response to this situation, Credicorp Capital has committed to acquiring through ASHC the value of the investment units from its clients within 45 days. This move seeks to ensure that clients will not bear the uncertainty of the liquidation process of Sartor-managed funds, which was mandated by the CMF.
About Credicorp Ltd.
Credicorp Ltd. (NYSE: BAP) is the leading financial services holding company in Peru, with a diversified business portfolio organized into four primary lines of business: Universal Banking, through Banco de Crédito del Perú (BCP) and Banco de Crédito de Bolivia; Microfinance, through Mibanco in Peru and Colombia; Insurance and Pension Funds, through Grupo Pacifico and Prima AFP; and Investment Management and Advisory, through Credicorp Capital and ASB Bank Corp. Credicorp has a presence in Peru, Chile, Colombia, Bolivia, and Panama.
Safe Harbor Statement
This press release contains forward-looking statements. These statements, which include words such as “will”, “would”, “expects” and “seeks”, are based on the current beliefs and expectations of Credicorp's management and are subject to risks and uncertainties. Actual results may differ materially from those projected. Credicorp Ltd. assumes no obligation to update these statements.
For more information, please refer to our filings with the U.S. Securities and Exchange Commission.
IR Contact:
investorrelations@credicorpperu.com
Investor Relations
Credicorp Ltd.
