IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, has signed a loan of up to $50 million with Banco Regional de Paraguay. The objective of the project is to increase medium- and long-term access to finance for companies in the agricultural, livestock and agribusiness sectors of the country.
The Paraguayan agricultural sector contributes to 18 percent of the gross domestic product (GDP), generates 21 percent of the country's jobs and represents more than 65 percent of national exports. Access to better financing for companies in this sector is key for development in the country. The funds will be used to finance projects of companies with a maximum annual turnover of $40 million and which require repayment terms of up to seven years.
In a second phase, IDB Invest will seek to attract additional resources from other investors, which will allow Banco Regional to continue increasing its portfolio of longer-term loans, while helping it to continue to diversify its funding sources. Rabobank Group of the Netherlands, a global leader in the financing of agriculture and banking oriented toward sustainability, is among Banco Regional’s main shareholders.
With IDB Invest’s support, Banco Regional will continue to strengthen its environmental and social management practices, including the use of images through a satellite monitoring program for credits for agriculture and livestock. This monitoring will prevent the financing of illegal activities such as deforestation. Additionally, Banco Regional will work to strengthen its origination and green loan placement capabilities.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About Banco Regional
Banco Regional S.A.E.C.A. was established in 1991 in Asunción, Paraguay, where its Head Office is currently located. It was founded as a Bank with the purpose of supporting and financing the agricultural sector. In 2008, the Rabobank Group of Holland was incorporated as a shareholder. Currently Banco Regional is one of the systemic banks of the Paraguayan market, leader in agribusiness in the country, combining that tradition with a broader approach, becoming a universal bank, which provides financial services to the business community of Paraguay, offering all products and services, both to its customers in the corporate segment and those belonging to its various programs including People Banking and SMEs, Retail and Private Banking and Digital Banking. With 35 branches located in strategic points of the country, Banco Regional has a strong presence in social networks, applying the omnichannel concept in a successful way to the banking business.