Project detail - BANCO BOLIVARIANO C.A.

BANCO BOLIVARIANO C.A.

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Who is our client

Bolivariano is a locally-owned Universal Bank with a strong regional presence in Guayaquil and the coastal region of Ecuador. The bank has a long track record (39 years of operations) and as of June 2017, it has TAs of USD 2,9 bln and ranks #6 in the sector, with a stable share of 8% TAs. The bank is focused on Corporate and SMEs segments (43.1% and 38.4% of total loans, respectively), with less relevant portfolios of loans to individuals (15.6%) and microfinance (2.9%).

Funding objective

Funds will be directed to SMEs

Why we fund this project

FMO will be highly additional by injecting long tenor financing to a bank in a sector with limited access to international funding, including long tenor financing. The bank provides short and long tenor financing to corporates and SMEs, with up to 8 years tenor. Since the bank’s funding is mostly short term (99% <1 year), FMO’s loan would improve the bank’s funding structure and allow to increase long tenor loans, currently financed mostly with equity. Partnering with Banco Bolivariano allows FMO to increase its reach in Ecuador, since the bank has a strong presence in Guayaquil and the coastal region of the country.

Environmental and social rationale

This facility has been categorised as Category C in accordance with FMO’s Sustainability Policy. The bank has a limited participation in high risk sectors (mainly fishing and food processing) and provides primarily working capital to its larger clients. Limited E&S risks are well mitigated by compliance with local regulation on environmental and social aspects and the bank's plan to develop an ESMS.

More investments

Date Total FMO financing
9/21/2020 USD 10.00 MLN
9/21/2020 USD 10.00 MLN
Website client
http://www.bolivariano.com
Region
Latin America & The Caribbean
Country
Ecuador
Sector
Financial Institutions
Signing date
12/14/2017
Total FMO financing
USD 30.00 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)
C