SUDAMERIS BANK S.A.E.C.A.
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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?
Sudameris Bank S.A.E.C.A (“Sudameris”), established in 1958 and headquartered in Asuncion, is the second largest bank in Paraguay in terms of total assets (USD 5.1 bln as of 2024). With 45 branches across the country and 943 employees, the bank provides a full range of banking products and services to its clients across universal segments. As a primarily domestic bank, the loan book (USD 4 bln) reflects the main attributes of the Paraguayan economy, with a focus on agricultural and cattle business, which together represent 40% of the total loan portfolio.
What is our funding objective?
FMO is acting as an A lender proposing a USD 100 mln senior unsecured loan. FMO’s funds will be used by Sudameris to finance eligible green activities (50%) and to provide loans to SMEs (50%), thereby supporting FMO’s climate action (SDG13) and supporting economic growth (SDG8) targets.
Why do we want to fund this investment?
Sudameris has been a relevant partner for FMO as a founding member of the Paraguayan sustainable finance roundtable, 'Mesa de Finanzas Sostenibles'. The bank's good environmental and social practices, its focus on commercial clients, and an already sizeable portfolio of green investments make it an ideal partner to reach FMO’s Climate Action goals and to continue promoting green investments in Paraguay. The proposed transaction is labeled as 50% Green.
What is the Environmental and Social categorization rationale?
The client has been categorized as Category A under FMO’s Sustainability Policy. Given the large proportion of loans to clients in the agriculture, cattle, and agro-industry sectors, the bank’s investments are deemed to have potential, significant, and adverse environmental and social (E&S) risks and/or impacts, such as land conversion, greenhouse gas emissions, and pollution. Sudameris is an existing client and FMO will continue to require the application of the EDFI Exclusion List, Paraguay E&S laws and regulations, and the IFC Performance Standards Framework for the identified triggered transactions.
More investments
- Website customer/investment
- https://www.sudameris.com.py
- Region
- Latin America & The Caribbean
- Country
- Paraguay
- Sector
- Financial Institutions
- Publication date
- 5/2/2025
- Deadline for feedback
- 7/1/2025
- Total FMO financing
- USD 100.00 MLN
- Funding
- FMO NV
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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) - A
- Translation
- https://www.fmo.nl/sudameris-bank-s.a.e.c.a.