Project detail - BANCOP S.A


Status: Approved investment
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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 Para la Comercialización y la Producción, Bancop S.A. (“Bancop”) is a private universal bank in Paraguay. It is owned by a group of 29 productive cooperatives tied to the country’s agriculture, cattle and agro-industrial sectors. Bancop started operations in 2012 and has been growing rapidly; by August 2020, it had USD 570 mln in total assets. Its loan portfolio is dedicated to SMEs and corporate clients mainly active in the agriculture and cattle value chains, as well as other sectors of the economy.

What is our funding objective?

The USD 30 mln facility will be dedicated to finance SME clients, in line with FMO’s definition, thereby contributing to decent work and economic growth. The total USD 30 mln transaction refers to a committed tranche of USD 15mln and an uncommitted tranche of USD 15mln (which may be activated).

Why do we fund this investment?

Bancop has been a relevant partner for FMO as a member of the Paraguayan sustainable finance roundtable, 'Mesa de Finanzas Sostenibles'. The bank's advanced E&S practices and its focus on commercial clients in key sectors of the economy make Bancop an ideal partner for FMO to support and promote investments in SMEs in Paraguay. This becomes highly relevant in the context of the ongoing COVID-19 crisis, with Bancop aiming to continue supporting clients with financing for working capital and long term investments.

What is the Environmental and Social categorization rationale?

The bank’s portfolio is considered medium risk; however, because of contextual issues in the country and sectors where the client operates Bancop has been categorised as a Category FI-A in accordance with FMO’s Sustainability Policy. Contextual issues in Paraguay and the large proportion of loans to clients in the agriculture, cattle and agroindustry sectors means that the bank’s investments could have adverse environmental and social impacts such as land conversion, greenhouse gas emissions and pollution. Bancop is an existing client of FMO, and as such is required to adhere to EDFI Exclusion List and Paraguay E&S laws and regulations as well as the applicable IFC Performance Standards. All IFC Performance Standards can potentially be triggered in Bancop’s portfolio; however, the client being a Financial Institution, FMO’s assessment focused on IFC PS1 and PS2 which determine the client’s ability to evaluate IFC PS applicability in its transactions.

More investments

Date Total FMO financing
12/13/2021 USD 10.00 MLN
12/17/2020 USD 7.50 MLN
9/21/2018 USD 7.50 MLN
Website customer/investment
Latin America & The Caribbean
Financial Institutions
Publication date
Effective date
Total FMO financing
USD 5.00 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)