BANCO PROMERICA S.A (EL SALVADOR)
Who is our client
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.
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 we fund this project
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.
Environmental and social 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.
|Date||Total FMO financing|
|5/30/2017||USD 10.00 MLN|
|5/30/2017||USD 5.00 MLN|
- Latin America & The Caribbean
- El Salvador
- Financial Institutions
- Signing date
- Total FMO financing
- USD 20.00 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)