BANCO PROMERICA S.A. (GUATEMALA)
Who is our client
Banco Promerica S.A. (Promerica GUA) started operating in 2007 following the acquisition of Bancasol, an institution founded in 1993. Promerica GUA has since grown into a mid-sized universal bank with total assets over USD 1.8bln. Promerica GUA is part of the Promerica Group, a financial group of Nicaraguan origin which currently operates in 9 different countries across Latin America and the Caribbean. The group is a strategic partner of FMO.
FMO has arranged an A/B syndicated loan of USD 45mln, split into an A tranche of USD 28 mln funded by FMO and funds managed by FMO, and a B-tranche of USD 17 mln with participations from other impact investors. Of the total USD 45 mln, USD 10mln to be on-lent according to FMO’s Master Green List and USD 35mln will be a SME tranche.
Why we fund this project
FMO has a long-term strategic partnership with Promerica GUA and with the Promerica Group. The SME tranche aligns with FMO’s objective to support economic growth, while the green tranche contributes to FMO’s goal to combat climate change.
Environmental and social rationale
Based on the bank’s portfolio composition, the investment has been assessed as Category B, in accordance with FMO’s Sustainability Policy. Promerica GUA has an existing ESMS. Compliance with local regulations and IFC Performance Standard (PS) framework for IFC PS-triggered transactions will be required.
|Date||Total FMO financing|
|11/3/2020||USD 17.00 MLN|
|5/29/2017||USD 10.00 MLN|
|5/29/2017||USD 5.00 MLN|
- Latin America & The Caribbean
- Financial Institutions
- Signing date
- Total FMO financing
- USD 28.00 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)