BANCO PROMERICA S.A. (EL SALVADOR)
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.
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.
|Date||Total FMO financing|
|11/12/2020||USD 20.00 MLN|
|5/30/2017||USD 5.00 MLN|
- Latin America & The Caribbean
- El Salvador
- Financial Institutions
- Signing date
- Total FMO financing
- USD 10.00 MLN
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)