Project detail - BANCO DE LA PRODUCCION S.A. PRODUBA

BANCO DE LA PRODUCCION S.A. PRODUBA

Status: Approved investment
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In case of questions

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

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.

More investments

Date Total FMO financing
12/1/2021 USD 38.00 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
Region
Latin America & The Caribbean
Country
Ecuador
Sector
Financial Institutions
Publication date
10/4/2021
Effective date
12/1/2021
Total FMO financing
USD 10.00 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