BANCO DE AMERICA CENTRAL, S.AStatus: Approved investment
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Who is our customer
Banco de América Central, S.A. (BAC) is a large commercial bank in Guatemala with a strong presence in the small and medium-sized company sector (SME) and among corporate clients in the country. The Bank has total assets amounting to USD 4.7 billion and a loan portfolio of USD 3.4 billion as of March 2022.
What is our funding objective?
The USD 200 million senior term facility focuses on supporting SMEs and local Green loans in Guatemala. BAC will use the SME funding to expand its SME portfolio, while the Green loans will be on-lent to green projects in line with FMO’s green lending criteria. These loan purposes fit perfectly with the ongoing strategy of BAC and their Group to become a more sustainable financial institution and to support local SME clients.
Why do we fund this investment?
Providing financing to SMEs and green projects in Guatemala aligns with FMO’s strategic goal to support job creation, reduce GHG emissions and expand actions against climate change effects. Considering the size of this facility and BAC's loan portfolio for SMEs and corporate clients, there will be a significant contribution to advance green finance and environmental protection among private sector entities in Guatemala. Additionally, funding SMEs will be essential in weathering the impact of the international economic slowdown and energy crisis.
What is the Environmental and Social categorization rationale?
The transaction for BAC has been classified as category A per FMO’s Sustainability Policy. The Bank’s portfolio includes financial exposures to sectors with potentially high environmental and social risks such as agribusiness, energy, and industrial manufacturing. As part of this investment, the Bank will implement an environmental and social action plan to enhance its environmental and social management policies and procedures with the support of an external consultant.
- Latin America & The Caribbean
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- USD 200.00 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)