Banco Promerica de Costa Rica, S.A.
Status: Investment in contracting phaseWhy disclosure?
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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 prospective customer?
Banco Promerica de Costa Rica, S.A. ("Promerica") is a universal bank in Costa Rica, owned by Promerica Financial Corporation, both existing clients of FMO. Promerica is the 4th largest private bank in Costa Rica with total assets of USD 2.1 bln.
What is our funding objective?
The USD 15 mln senior facility (in addition to USD 15 mln provided on an uncommitted basis) will be used by Promerica to finance green projects, including the construction of green buildings.
Why do we want to fund this investment?
Given its good financial performance, its high-quality management team, its clear sustainability strategy and its strong regional shareholder, Promerica is an attractive partner for FMO. On the other hand, the construction sector is an ideal action field in the fight against environmental pollution and the effects of climate change. Through this senior loan, FMO contributes to its Climate Action ambitions by supporting the increase in investments in climate mitigation and adaptation.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category B in accordance with FMO’s Policy, due to medium E&S risks in the portfolio and an exposure to IFC Performance Standard Triggered Transactions well below 10% of the bank's total portfolio. Promerica has a fully functional Environmental and Social Management System integrated with its risk management framework, which the bank is in process of updating to strengthen the management of these high-risk transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 5/14/2020 | USD 10.00 MLN |
| 6/4/2019 | USD 5.00 MLN |
| 8/21/2023 | USD 5.00 MLN |
| 8/21/2023 | USD 15.00 MLN |
- Website customer/investment
- https://www.promerica.fi.cr/
- Region
- Latin America & The Caribbean
- Country
- Costa Rica
- Sector
- Financial Institutions
- Publication date
- 11/3/2023
- Deadline for feedback
- 12/3/2023
- Total FMO financing
- USD 15.00 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