Company name
Banco PICHINCHA
Project number
12392-01
FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.
E&S category
FI-2
Country
Peru
Sector
Financial Institutions
Status
In implementation
Disclosed date
10/09/2018
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
11/09/2018
Approval date
11/16/2018
Signed date
12/14/2018
Sponsoring entity
Banco Pichincha Peru
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 13,000,000
Currency
USD
Project scope and objective
This project involves the underwriting of subordinated bonds for up to US$13 million to be issued by Banco PICHINCHA via a private offering. The subordinated bond issue will have a 10-year term, with eight years grace. Proceeds from the subordinated bonds will be used to grow Banco PICHINCHA’s microfinance portfolio.
Banco PICHINCHA is a financial institution chartered in Peru that belongs to Grupo Pichincha of Ecuador. It is a multipurpose bank with a small share—2.7%—of the Peruvian financial system, positioning it in seventh place. The Bank’s business model is based on products and services provided to four market segments: 45% small and medium-sized businesses; 31% consumption (geared toward low- and medium-income segments); 15% mortgages; and 9% microenterprises.
IDB Invest’s commitment to purchase the bonds would be subject to certain conditions, including the company agreeing to comply with IDB Invest environmental and social policies while IDB Invest holds the securities.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesFor inquiries, comments and information requests about the project
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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. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY
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