Project detail - BANCO MULTIPLE BHD LEON S.A.

BANCO MULTIPLE BHD LEON S.A.

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Who is our client

With total assets of USD 3.1 billion (Dec 2012), Banco BHD is the second largest privately owned financial institution in the Dominican Republic. The bank has a market participation of 13% (based on TA, Dec 2012), a network of 90 branches and 2,800 employees. BHD is a subsidiary with 98% ownership by Centro Financiero BHD, which in turn is owned by local Grupo BHD (51%), Banco Sabadell of Spain (20%), Popular Inc of Puerto Rico (20%) and IFC (9%). Two-thirds of the corporate loan portfolio of BHD is made up of small and medium enterprises (SMEs).

Funding objective

FMO is funding Banco BHD with a 5-year USD 10 million senior loan and an 8-year USD 15 million subordinated loan. The USD 10 mln senior loan will be used by BHD to provide financing to SMEs. The USD 15 mln subordinated loan will be used by BHD to strengthen its capital base.

Why we fund this project

FMO’s long-term funding will enable BHD to grow and expand its services to a relatively underserved SME market in the Dominican Republic, thereby providing access to financing that will ultimately go towards stimulating economic growth.

More investments

Date Total FMO financing
3/13/2013 USD 10.00 MLN
Region
Latin America & The Caribbean
Country
Dominican Republic
Sector
Financial Institutions
Signing date
3/13/2013
Total FMO financing
USD 15.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A