BANCO PROMERICA S.A (EL SALVADOR)
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 1996, Promerica El Salvador is a medium size commercial bank in El Salvador, part of Grupo Promerica – a strategic client of Financial Institutions in Latin America (TA: USD 15 billion). The Bank is the 5th largest in the market with a total asset of USD 1.3 billion and a loan portfolio of USD 832 million as of June 2020. It is an existing client of FMO since 2017.
What is our funding objective?
The USD 20 million 6-year facility is fully earmarked for financing the growth of bank’s SME portfolio In Dec 2021, an additional USD 5mln was activated and disbursed also with the purpose of on-lending to SMEs. This USD 5mln tranche is part of a USD 10mln uncommitted line signed in 2020.
Why do we fund this investment?
Employing more than one-third of El Salvador’s workforce and generating nearly half of the country’s gross domestic product, small and medium enterprises (SMEs) play a critical role in the country’s economic stability. Promerica El Salvador is one of the leading banks in the country which has carved out a niche for itself in understanding the need of the SME’s and providing customized financing solution. Through this investment, FMO reiterates its support to the SME sector and empowerment of financial inclusion.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category B in accordance with FMO’s Policy. The bank has a well-functioning ESMS which is comprehensive and integrated with its risk management framework. The risk categorization criteria are aligned with that of the rest of the group and include the national Environmental and Social (E&S) requirements. The categorization criteria also reflect those of the IFC and are considered adequate to identify those projects in Promerica El Salvador’s portfolio with the highest E&S risks. The overall exposure to IFC PS TTs remains <10% of the bank’s total portfolio.
More investments
| Date | Total FMO financing |
|---|---|
| 5/30/2017 | USD 10.00 MLN |
| 5/30/2017 | USD 5.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- El Salvador
- Sector
- Financial Institutions
- Publication date
- 9/25/2020
- Effective date
- 11/12/2020
- Total FMO financing
- USD 20.00 MLN
- Funding
- 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) - B