Project detail - BANCO PROMERICA S.A. (EL SALVADOR)

BANCO PROMERICA S.A. (EL SALVADOR)

Back to map

Who is our client

Banco Promerica, S.A. is a medium size commercial bank in El Salvador with total assets of USD 1.05bn. It ranks 6th in the Salvadorian market and lends to both consumers and SMEs/mid-corporates (50/50). The bank is part of Grupo Promerica, a regional banking group operating in 9 countries across Latin America and the Caribbean.

Funding objective

The up to USD 20 mln 10-year facility consists of: i) a USD 10 mln tranche to be on-lent to SMEs; ii) a USD 10 mln tranche to be on-lent to green projects and clients (in line with FMO's green eligibility criteria), of which USD 5 mln is committed and the remaining USD 5 mln is provided on an uncommitted basis. This structure allows the bank to build up its green loan book step-by-step, and request activation of the uncommitted part once it has gained some experience.

Why we fund this project

FMO provides this financing in order to support the access to finance for SMEs as well as to encourage lending to sustainable clients and projects by Banco Promerica. The facility is the fourth (after Produbanco Ecuador, Promerica Costa Rica and Promerica Guatemala) of a series of SME/green line projects with the Promerica Group, aimed to support the development of the banks green lending capabilities. Technical assistance was also provided to the bank in order to identify business opportunities, train staff and support specified product development. The transaction is fully in line with FMO's strategy to double our impact and halve our footprint.

More investments

Date Total FMO financing
11/12/2020 USD 20.00 MLN
5/30/2017 USD 5.00 MLN
Region
Latin America & The Caribbean
Country
El Salvador
Sector
Financial Institutions
Signing date
5/30/2017
Total FMO financing
USD 10.00 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)
B