Project detail - Banco Guayaquil S.A.

Who is our prospective customer?

Banco Guayaquil S.A. is one of Ecuador's leading private-sector financial institutions, providing a broad range of banking products and services to individuals, microenterprises, small and medium-sized enterprises (SMEs), and corporate clients across the country. The bank has a nationwide presence through its branch network and digital banking platforms and plays an important role in supporting financial inclusion, economic activity, and private sector development in Ecuador.

What is our funding objective?

FMO proposes a USD 40 million senior unsecured loan, structured into a USD 25 million committed tranche and a USD 15 million uncommitted tranche. The proposed financing will support Banco Guayaquil's lending activities to women-led and women-owned microenterprises, small and medium enterprises in Ecuador. The facility is intended to increase access to finance for women entrepreneurs, a segment that continues to face barriers in obtaining adequate funding despite its significant contribution to economic growth and employment. By expanding the availability of credit to women-led businesses, the investment is expected to support business development, job creation, and financial inclusion while contributing to greater economic participation of women in Ecuador.

Why do we want to fund this investment?

FMO's investment aims to support activities that contribute to inclusive growth contributing to SDG 10 and SDG 5. FMO's financing aims to provide Banco Guayaquil with stable, longer-term funding to expand lending to women-led and women-owned microenterprises and SMEs, a strategic segment that is often underserved by the financial sector. Through this investment, FMO seeks to support greater financial inclusion and economic empowerment of women entrepreneurs while partnering with a well-established financial institution with a demonstrated commitment to serving this market. The transaction is expected to contribute to reducing financing gaps for women-owned businesses and aligns with FMO's objective of promoting inclusive and sustainable private sector development.

What is the Environmental and Social categorization rationale?

Banco Guayaquil has been categorized as Category A in accordance with FMO's Sustainability Policy due to its large corporate portfolio as well as financial exposures to sectors with potentially significant and adverse environmental and social risks, such as aquaculture, fishing, agribusiness, and industrial manufacturing, and construction. Key potential impacts and risks related to these sectors in the country could include deforestation, loss of biodiversity, soil and water pollution, and labor and occupational health and safety risks. Banco Guayaquil's Environmental and Social (E&S) risks are managed through an existing Environmental and Social Management System (ESMS) operated by a dedicated E&S professional. An E&S Action Plan will be agreed to strengthen the ESMS and its implementation. As part of the transaction, Banco Guayaquil is required to apply the EDFI Exclusion List, Ecuador's E&S laws and regulations, and the IFC Performance Standards for applicable transactions.