BANCO DE LA PRODUCCION S.A. PRODUBA
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
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
Banco de la Produccion S.A. - Produbanco (Produbanco) is a universal bank in Ecuador, owned by the Promerica financial group - a long standing client of FMO. Produbanco is the fourth largest bank in Ecuador with Total Assets amounting to USD 5.5billion.
What is our funding objective?
The financing of FMO and funds managed by FMO of USD 48mln is dedicated to financing Women owned SME clients and SMEs, thereby contributing to decent work and economic growth activities. It also supports the capital position of the financial institution. The total USD 48mln transaction refers to a USD 38mln senior loan and a USD 10mln sub-debt loan.
Why do we fund this investment?
Produbanco plays an important role in providing access to finance to SMEs, a critical segment in supporting job creation. Through this facility, FMO realizes its strategic goals to finance SMEs and to catalyze other investors as the FMO loans are part of larger syndicated loan facilities arranged by FMO. Given the current macroeconomic situation in the Ecuador, providing up to 5-year financing is highly additional. Moreover, the subordinated funding strengthens the Tier 2 Capital base of Produbanco and fund organic growth.
What is the Environmental and Social categorization rationale?
Produbanco is an FI B client given its business activities and exposure. One of Produbanco's main strategic pillars is its commitment to sustainability and good ESG practices. As a result, the bank is committed to continuously grow its green line credit portfolio, developing a gender finance proposition and continuously improving its ESG standards and practices.
More investments
- Region
- Latin America & The Caribbean
- Country
- Ecuador
- Sector
- Financial Institutions
- Publication date
- 10/4/2021
- Effective date
- 12/1/2021
- Total FMO financing
- USD 38.00 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) - B