BAC HN: Catalyzing Investments in Projects with an Environmental and Social Focus

The Project aims to provide an unsecured senior A/B loan of up to US$210.35 million (the “Project” or the “Financing”) in Honduras. The IDB Invest portion will consist of: (i) Tranche I: a committed senior loan of up to US$50 million; and (ii) Tranche II: an uncommitted senior loan of up to US$50 million. The financing will also include a mobilization of approximately US$110 million, provided by: (i) a loan from the JICA Trust Fund Achieving Development in Latin America and the Caribbean, a fund managed by the IDB Group (“TADAC Fund”), in the amount of up to US$60 million; and (ii) a parallel loan from the Société de Promotion et de Participation pour la Coopération Économique (“Proparco”) of up to US$50 million. Finally, the Project includes a Blended Finance (“BLF”) component of up to US$350,000, which will be provided by the Women Entrepreneurs Finance Initiative (“We-Fi”), subject to the achievement of growth targets for its portfolio of women-owned or women-led Small and Medium-Sized Enterprises (“SMEs”) and a corporate incentive to improve the non-financial value proposition for Women-Owned SMEs.   

The project aims to support Banco de América Central Honduras S.A (“BAC Honduras” or the “Bank”) in growing its Micro, Small and Medium-Sized Enterprise (“MSME”) portfolio, including women entrepreneurs as well as projects with an environmental focus. IDB Invest will provide Technical Assistance (“TA”) to strengthen BAC Honduras’s non-financial value proposition for MSMEs and women-led MSMEs through the development of business and financial support modules with an environmental focus. The TA will include capacity building for the Board of Directors in this area. Additionally, the financing will incorporate an Environmental and Social Action Plan (“ESAP”) and Corporate Governance (“CG”) recommendations, aimed at further strengthening the Bank’s alignment with international standards.