Banco de la Produccion, S.AStatus: Completed investment
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Who is our customer
Banco de la Produccion S.A. - Produbanco (Produbanco) is a universal bank in Ecuador, owned by the Promerica financial group, a long standing client of FMO. Produbanco is the third largest bank in Ecuador with Total Assets amounting to USD 4.0 billion.
What is our funding objective?
The USD 15 million subordinated facility will support Produbanco to strengthen its balance sheet. The USD 15 million senior loan will be used by the bank to on-lend to green projects, ranging from renewable energy solutions (i.e. solar panels) to energy efficiency projects in a broad range of sectors.
Why do we fund this investment?
Given its strong market position and portfolio quality, its high quality management team and its strong regional shareholder, Produbanco is an attractive partner for FMO to channel much needed liquidity into the productive sector in Ecuador. In the current macroeconomic situation in the country, providing up to 6-year to 8-year financing is highly additional. Through the senior loan, FMO contributes to its strategic goal of halving its footprint, as the projects financed with the proceeds of the loan will have a positive effect on the environment.
- Latin America & The Caribbean
- Financial Institutions
- Effective date
- End date
- Total FMO financing
- USD 15.00 MLN
- FMO NV
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)