SUDAMERIS BANK S.A.E.C.A.
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Sudameris is a mid-sized universal bank with almost 10% market share (rank #4) in the Paraguayan banking sector. The bank serves primarily commercial clients with 61% of its portfolio directed to corporate clients and 33% to SMEs. The bank's portfolio is relatively diversified by sectors with the most relevant being industry, agriculture, commerce and cattle.
What is our funding objective?
FMO's funding will be used by Sudameris to provide loans to SMEs and corporate sub-borrowers for general purposes and at least 30% of the loan will be directed to finance green investments in line with FMO's green lending criteria aimed at energy efficiency and renewable energy.
Why do we fund this investment?
Sudameris has been a relevant partner for FMO as a founding member of the Paraguayan sustainable finance roundtable 'Mesa de Finanzas Sostenibles'. The bank's advanced environmental and social practices and its focus on commercial clients make it an ideal partner for FMO to support and promote green investments in Paraguay. This becomes highly relevant in the context of the COVID-19 crisis. Sudameris aims to continue supporting its clients with financing for working capital and investments at a time when funding has become scarce across financial markets.
What is the Environmental and Social categorization rationale?
The client has been categorised as Category A in accordance with FMO’s Sustainability Policy. Given the large proportion of loans to clients in the agriculture, cattle and agroindustry sectors, the bank’s investments are deemed to have potentially significant adverse environmental and social risks and/or impacts such as land conversion, greenhouse gas emissions and pollution. Sudameris is an existing client and FMO will continue to require adherence to the EDFI Exclusion List, Paraguay E&S laws and regulations as well as the IFC Performance Standards Framework for the identified triggered transactions.
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| Date | Total FMO financing |
|---|---|
| 12/16/2022 | USD 40.00 MLN |
| 11/18/2020 | EUR 0.03 MLN |
| 12/19/2019 | USD 40.00 MLN |
| 9/19/2018 | 7.5% |
| 6/17/2022 | USD 10.00 MLN |
| 8/14/2018 | EUR 0.03 MLN |
| 1/4/2021 | USD 10.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Paraguay
- Sector
- Financial Institutions
- Publication date
- 6/22/2020
- Effective date
- 10/20/2020
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A