Company name

Banco de América Central, S.A. (“BAC GT”)

Project number

12853-02

FI-3 operations are those where the risk potential is considered low: the FI’s current or future portfolio consists of financial exposure to business activities that predominantly have minimal or no adverse environmental and social impacts.

E&S category
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FI-3

Country

Guatemala

Sector

Financial Institutions

Status

In implementation

Disclosed date

06/03/2020

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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07/03/2020

Approval date

07/30/2020

Signed date

08/12/2020

Team leader

Espinoza Diaz, Jose Alejandro

Investment type

Financing requested

N/A

Syndicated amount

N/A

Financing amount

USD $ 100,000,000

Currency

USD

Project scope and objective

The proposed transaction consists of a senior unsecured loan to Banco de América Central, S.A. (“BAC GT” or the “Bank”) denominated in US dollars (“US$”) for up to US$100 million (the “project”). Project financing will be structured as follows: (i) US$75 million from IDB Invest; (ii) US$25 million mobilized through potential cofinancing, financed by IDB Invest in its capacity as administrator of the Chinese Cofinancing Fund for Latin America and the Caribbean (the “Fund”). The objective of the project is to support BAC GT in its efforts to increase financing to small and medium-sized enterprises (“SMEs”) and contribute to the development of value chains by providing financing to anchor companies (mid-market) within Guatemala. At the same time, IDB Invest will provide advisory services focused on the aforementioned supply chains with a focus on enhancing the SMEs’ value added. As part of its institutional response and in order to mitigate the economic crisis caused by the COVID-19 pandemic, IDB Invest is prioritizing the SME sector in the region by taking appropriate steps to address the difficulties they face accessing financing through financial institutions.


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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW

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Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Gustavo Morales

POSITION

Corporate Treasury

PHONE NUMBER

+2361-0909 Ext. 2700

EMAIL

gmorales@baccredomatic.gt

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices