Company name

Banco de la Producción, S.A.

Project number

12582-01

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
tooltip

FI-2

Country

Nicaragua

Sector

Financial Institutions

Status

In implementation

Disclosed date

03/28/2019

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

Projected board date
tooltip

06/17/2019

Approval date

06/21/2019

Signed date

09/04/2019

Sponsoring entity

N/A

Team leader

Elli Gonzalez, Leila Leticia

Investment type

Financing requested

N/A

Syndicated amount

USD $ 13,000,000

Financing amount

USD $ 27,000,000

Currency

USD

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 project

Request information

Learn more about how we provide private-sector solutions in the region.

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

48.7 Kb

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

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

Melisa Castro Rivas

POSITION

Finance Manager

PHONE NUMBER

+ (505) 2255-9595 (Ext. 33019)

EMAIL

MelisaCastro@banpro.com.ni

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