Banco Multiple Ademi S.AStatus: Approved investment
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Who is our customer
Banco Múltiple Ademi, S.A. (Ademi) is a longstanding client of FMO since 2011. Ademi is the largest MSMEfocused Financial Institution in the Dominican Republic (total assets USD 342mln, Equity USD 69mln by 1Q23) and in possession of a universal banking license since 2013. The bank is a key player in providing loans and savings products to the Base of the Pyramid and promotes financial inclusion in the Dominican Republic.
What is our funding objective?
FMO's investment of USD 25mln equivalent in local currency (Dominican Peso) has a committed tranche of USD 15mln and an uncommitted tranche of USD 10mln. The investment will help Ademi to continue supporting micro-financial institutions and women-owned SMEs. The facility will dedicate 85% of the proceeds to be on-lent to microentrepreneurs, women-led SMEs, or rural SMEs, and 15% of the proceeds to SMEs in general in the Dominican Republic. Thereby contributing to reducing inequalities.
Why do we fund this investment?
FMO focuses on fostering sustainable economic growth in emerging markets. This facility will increase access to finance microentrepreneurs, SMEs, particularly woman-led SMEs and rural SMEs in the Dominican Republic across various sectors of the economy. The high degree of business informality requires a non-traditional bank like Ademi to provide financing solutions, supporting economic growth and jobs. With this, FMO ensures its strategic goals by promoting financial inclusion. At the same time, the investment is highly additional as it provides a 5-year loan financing supporting Ademi’s funding needs.
What is the Environmental and Social categorization rationale?
Ademi is classified as an FI-C in accordance with FMO’s Sustainability Policy. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, are covered by FMO in other assessments such as Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
- Website customer/investment
- Latin America & The Caribbean
- Dominican Republic
- Financial Institutions
- Publication date
- Effective date
- Total FMO financing
- USD 15.00 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)