IDB Invest finances Banco Promerica to support its green line and finance small and medium businesses in Costa Rica
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, provided a loan of $20 million to Banco Promerica Costa Rica. The funds will be used to facilitate financing to small and medium-sized enterprises (SME) and to increase the portfolio of green lines of the financial institution. The financing has a tenor of up to five years.
The operation seeks to provide long-term financing to Banco Promerica, which will increase the availability of resources for the country's SME, while reducing Banco Promerica's dependence on short-term deposits to finance this type of investment. Up to 80 percent of the loan proceeds will go to SME, meanwhile, up to 20 percent will be used to finance the growth of the bank's green line portfolio.
In Costa Rica, approximately 93 percent of companies are SME and employ almost 31 percent of workers in the business sector in the country. The decisions of these companies to invest in innovation and development of their business respond, to a large extent, to restrictions related to access to knowledge, human capital and access to financing.
It is expected that this transaction will potentially contribute to two United Nations Sustainable Development Goals: Decent Work and Economic Development (SDG 8), and Industry, Innovation and Infrastructure (SDG 9).
IDB Invest will provide technical assistance as part of the financing, which will support Banco Promerica in preparing the process of issuing the bank's first sustainable bond and will also contribute to the identification of best practices for the promotion and commercialization of its green financing line.
The signing took place during the IDB Invest Sustainability Week, which brings together more than 600 leaders from the private sector to share challenges and best practices in sustainable investments. The forum is taking place from June 24 to 28 in Panama City.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.1 billion under management and 329 clients in 21 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.
About Banco Promerica
Banco Promerica is part of the Promerica Regional Banking Group (Promerica Financial Corporation), with presence in Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Dominican Republic and Cayman Islands. Banco Promerica, works on cultural and business management, and is focused on the continuous review of processes and procedures, according to the clients' demands. Its mission is to build Costa Rica's best private bank given its focus on firm and lasting relationships with clients, partners, and collaborators, committed to the sustainable development and future of Costa Rica.