Project detail - BANCO PROMERICA S.A. (EL SALVADOR)

BANCO PROMERICA S.A. (EL SALVADOR)

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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.

Funding objective

The USD 20 million 6-year facility is fully earmarked for financing the growth of bank’s SME portfolio.

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.

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
Signing date
11/12/2020
Total FMO financing
USD 20.00 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)
B