Company name
Banco de la Producción, S.A.
Project number
12117-01
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
Ecuador
Sector
Financial Institutions
Status
In implementation
Disclosed date
03/30/2018
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
05/01/2018
Approval date
05/01/2018
Signed date
07/19/2018
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
USD $ 23,000,000
Financing amount
USD $ 29,000,000
Currency
USD
Project scope and objective
The objective of this financing is to channel medium-term resources to Banco de la Producción S.A. (“Produbanco” or the “Bank”) to finance small and medium-sized enterprises (SMEs), as well as a green credit line for SMEs. The financing package consists of: (1) A senior unsecured loan of up to US$30 million, composed as follows: (i) US$12 million from IDB Invest; (ii) US$13 million from IDB; and (iii) US$5 million mobilized through a potential co-financing, to be financed by IDB Invest in its capacity as administrator of the Chinese Fund for Co-financing for Latin America and the Caribbean (the “Fund”). The term of the senior loans is up to five years with one-year of grace period; and (2) A potential subordinated loan of up to US$20 million is being considered. The subordinated loan consists of: (i) US$2 million (uncommitted) from IDB Invest and (ii) US$18 million from a B lender. The term for this subordinated financing will be up to eight years bullet. The remaining terms and conditions are subject to negotiation with the client, once the B lender formally confirms its participation in this operation.
The Project also includes a Technical Assistance (“TA”) to provide diagnostic, training and promotion tools to Produbanco with the objective of improving and promoting its green lending products. The TA will provide direct and indirect support to Produbanco’s SME clients to be the beneficiaries of these sustainable financial products and thereby increase their access to green financing.
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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
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