BANCO DE LA PRODUCCION S.A. PRODUBAStatus: Approved 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 Corporation, a long standing client of FMO. Produbanco is the third largest bank in Ecuador with Total Assets amounting to USD 4.8 billion per Dec 2018.
What is our funding objective?
FMO will provide a USD 15mln senior loan to Produbanco as part of a USD 32mln syndicated facility. The syndicated facility will be dedicated towards (i) green financing (USD 27mln) and (ii) the financing of women owned enterprises (USD 5mln).
Why do we fund this investment?
Firstly, this transaction is strongly aligned with SDG 13 Climate Action as part of the funds of will be dedicated towards funding green clients of Produbanco. Since FMO provided a first green loan to Produbanco in 2016, the bank has been building a large green loan portfolio. Secondly, this transaction is contributing to SDG 5 Gender Equality, SDG 8 Decent Work and SDG 10 Reduced Inequalities as part of the funds and capacity development will be dedicated towards financing women owned SMEs. Thirdly, FMO will be highly additional by injecting liquidity to a dollarized economy (unable to increase money supply) with limited access to international funding.
What is the Environmental and Social categorization rationale?
Produbanco is an FI B client. One of Produbanco's main strategic pillars is its' commitment to sustainability and Corporate Social Responsibility. As a result, the bank is committed to continue growing the green line credit portfolio and developing the E&S risk capacity.
|Date||Total FMO financing|
|12/1/2021||USD 38.00 MLN|
|12/1/2021||USD 10.00 MLN|
|5/25/2021||EUR 0.02 MLN|
|8/29/2018||EUR 0.04 MLN|
|12/13/2017||USD 15.00 MLN|
|12/13/2017||USD 15.00 MLN|
|8/23/2016||USD 10.00 MLN|
|7/14/2016||USD 15.00 MLN|
- Latin America & The Caribbean
- Financial Institutions
- Publication date
- Effective 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)