Company name
Banco Promerica El Salvador
Project number
11861-03
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
El Salvador
Sector
Financial Institutions
Status
In implementation
Disclosed date
11/15/2021
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
12/21/2021
Approval date
12/21/2021
Signed date
12/29/2021
Sponsoring entity
N/A
Investment Operations Department Contact
Portfolio Management Division
Investment type
Syndicated amount
N/A
Financing amount
USD $ 20,000,000
Currency
USD
Project scope and objective
The proposed transaction is a subscription to the first public issuance program of sustainable bonds by Banco Promerica S.A. ("Promerica") in the local Salvadoran market, for up to US$100 million, of which US$20 million will be subscribed by IDB Invest during the first issue and the remainder, limited to US$80 million, will be subscribed by other impact investors in subsequent issuances. These funds will be used to finance projects with a positive social and environmental impact within the country and will focus on Small and Medium Enterprises (SMEs) with a green portfolio and a social portfolio. IDB Invest will support Promerica in launching its first thematic bond in accordance with the Social Bond Principles issued by the International Capital Markets Association (ICMA). This will be supported by a Second Party Opinion (SPO) by an independent third party that will validate the bond classification as a Thematic Bond and provide the associated market accreditation for it to attract the interest of issuers seeking to maximize the social impact of their investments. This thematic bond will be aligned with the UN Sustainable Development Goals (SDGs) and the Social Bond Principles (SBP), making it the first bond issuance of its kind on the El Salvador Stock Exchange and by IDB Invest.
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Contact information
For inquiries, comments and information requests about the project
Request informationAlternatively, you may also use the following contact information :
Client Contact
lmavalos@promerica.com.sv
PHONE NUMBER
(503) 2513-5234
POST OFFICE ADDRESS
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 OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(202) 623-3952.
IDB Invest has zero tolerance to reprisal or retaliation against anybody who voices its opinion or opposition to IDB Invest-financed projects.
For inquiries, comments and information requests about the project
Request informationLearn 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. 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.
PROMERICA ES 11861-03 ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
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