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Company name

Banco de Machala S.A.

Project number

14919-01

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
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FI-2

Country

Ecuador

Sector

Financial Institutions

Status

Proposed

Disclosed date

07/09/2024

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

Projected board date
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09/24/2024

Approval date

09/24/2024

Signed date

10/02/2024

Sponsoring entity

N/A

Investment Operations Department Contact

Portfolio Management Division

Investment type

Syndicated amount

USD $ 15,000,000

Financing amount

USD $ 15,000,000

Currency

USD

Project scope and objective

The operation consists of a senior secured loan of up to US$ 15 million to be funded by IDB Invest (the "IDB Invest Loan"), and a parallel loan of up to US$15 million to be funded by co-lenders (the "Parallel Loan" and together with the IDB Invest Loan, the "Loan"). The Loan is expected to have a term of up to five years with semi-annual principal and interest amortization payments. The proceeds of the Loan will be used to promote the growth of Banco de Machala’s green, blue and food production credit portfolio in Ecuador.

The Project team will support Banco de Machala through advisory services to enhance its sustainability strategy across two key pillars: (i) defining a decarbonization strategy, this strategy will align with the principles of the Net Zero Bank Alliance, to align their portfolios to zero emissions by the year 2050, and (ii) developing a strategy to promote sustainable and equitable food systems through tailored financial instruments and suitable KPIs aligned with best practices.

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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.

ENG - BANCO DE MACHALA S.A

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Contact information

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Alternatively, you may also use the following contact information :

Client Contact

EMAIL

maria.sandoval@bmachala.com

PHONE NUMBER

+593 4 392 0404 ext 3479

POST OFFICE ADDRESS

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

For inquiries, comments and information requests about the project

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