Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • El Salvador
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Netherlands Development Finance Company (FMO)
Status: Approved
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-05-30
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: Banco Promerica, S.A.
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ FMO website
Updated in EWS: 2017-07-25
BANCO PROMERICA S.A. (EL SALVADOR)
FMO-51737

Project Description
FROM FMO: Banco Promerica, S.A. is a medium size commercial bank in El Salvador. It lends to both consumers and SMEs/mid-corporates (50/50). The bank is part of Grupo Promerica, a regional banking group operating in 9 countries across Latin America and the Caribbean. FMO provides this financing in order to support the access to finance for SMEs as well as to encourage lending to sustainable clients and projects by Banco Promerica. The facility is the fourth (after Produbanco Ecuador, Promerica Costa Rica and Promerica Guatemala) of a series of SME/green line projects with the Promerica Group, aimed to support the development of the banks' green lending capabilities. Technical assistance was also provided to the bank in order to identify business opportunities, train staff and support specified product development. The transaction is fully in line with FMO's strategy to double our impact and halve our footprint.
Investment Description
The up to USD 20 million 10-year facility consists of: i) a USD 10 mln tranche to be on-lent to SMEs; ii) a USD 10 mln tranche to be on-lent to green projects and clients (in line with FMO's green eligibility criteria), of which USD 5 mln is committed and the remaining USD 5 mln is provided on an uncommitted basis. This structure allows the bank to build up its green loan book step-by-step, and request activation of the uncommitted part once it has gained some experience.
Contact Information
FMO The Netherlands +31 70 314 96 96 info@fmo.nl Anna van Saksenlaan 71 2593 HW, The Hague The Netherlands