Banco de la Producción, S.A.
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.
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
Elli Gonzalez, Leila Leticia
USD $ 13,000,000
USD $ 27,000,000
Project scope and objective
The objective of this transaction is to increase access to financing for small and medium sized agroindustry producers in Nicaragua. Banco de la Producción, S.A. (“Banpro”) will create its Diversified Payments Rights Program (the “DRP Program”) and make an issuance of up to US$150 million. IDB Invest will purchase up to US$40 million in debt instruments under the Program with a tenor of up to 5 years including one year of grace period with a potential extension of up to 2 years. It is expected that the IDB Group will purchase up to US$27 million, and that the China Co-Financing Banco de la Producción, S.A. Fund for Latin America and the Caribbean - a fund under IDB´s administration - will purchase up to US$13 million. Under the DPR Program, Banpro (the “Sponsor”) will sell all its rights over its existing and future Diversified Payment Rights (“DPR”) to a Cayman Island Vehicle, NIC FLOWS SPV, Ltd., (the “SPV”). The proceeds from the DPR Program will be channeled by the SPV to Banpro as a payment for the DPRs sold.
IDB Invest has a track record working with Banpro. In 2018 IDB Invest approved a US$20 million senior credit line to support the Bank’s efforts to build a green portfolio (US$10 million disbursed as of January 2019). The engagement included technical assistance and a US$1.5 million guarantee facility to enhance collateral to make viable to offer green lines to smaller companies and agricultural producers. Finally, Banpro is part of IBD Invest TFFP program with an approved line of US$30 million.
For inquiries, comments and information requests about the projectRequest information
Alternatively, you may also use the following contact information:
Melisa Castro Rivas
+ (505) 2255-9595 (Ext. 33019)
IDB Invest Contact
1350 New York Ave NW, Washington, DC 20005