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 group - a long standing client of FMO. Produbanco is the fourth largest bank in Ecuador with Total Assets amounting to USD 5.5billion.
What is our funding objective?
The financing of FMO and funds managed by FMO of USD 48mln is dedicated to financing Women owned SME clients and SMEs, thereby contributing to decent work and economic growth activities. It also supports the capital position of the financial institution. The total USD 48mln transaction refers to a USD 38mln senior loan and a USD 10mln sub-debt loan.
Why do we fund this investment?
Produbanco plays an important role in providing access to finance to SMEs, a critical segment in supporting job creation. Through this facility, FMO realizes its strategic goals to finance SMEs and to catalyze other investors as the FMO loans are part of larger syndicated loan facilities arranged by FMO. Given the current macroeconomic situation in the Ecuador, providing up to 5-year financing is highly additional. Moreover, the subordinated funding strengthens the Tier 2 Capital base of Produbanco and fund organic growth.
What is the Environmental and Social categorization rationale?
Produbanco is an FI B client given its business activities and exposure. One of Produbanco's main strategic pillars is its commitment to sustainability and good ESG practices. As a result, the bank is committed to continuously grow its green line credit portfolio, developing a gender finance proposition and continuously improving its ESG standards and practices.
|Date||Total FMO financing|
|12/1/2021||USD 10.00 MLN|
|5/25/2021||EUR 0.02 MLN|
|11/7/2019||USD 15.00 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 38.00 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)