The proposed transaction consists of a senior unsecured loan to Banco Davivienda, S.A. (“Davivienda ES” or the “Bank”) denominated in US dollars (US$) for up to US$100 million (the “project”). The project financing will be structured as follows: (i) US$35 million from IDB Invest; (ii) US$15 million mobilized through potential cofinancing, financed by IDB Invest in its capacity as administrator of the China Co-financing Fund for Latin America and the Caribbean (the “Fund”); and (iv) US$50 million mobilized through co-financiers or “B” lenders. The objective of the project is to support Davivienda El Salvador in the development of its portfolio of financing for environmentally friendly projects (“green loans”) in El Salvador. At the same time, IDB Invest will provide advisory services that will focus on monitoring these projects, as well as on measuring impact indicators and the bank’s contribution to them.
As part of its institutional response and to mitigate the economic crisis caused by the Covid-19 pandemic, IDB Invest is prioritizing financing through financial institutions to ensure member countries have the resources they need for development projects.