SALVADORENO DPR FUNDING LTD
Status: Completed 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
FMO invested US$ 30 million into a seven year loan to be issued by Davivienda Salvadoreno DPR Funding Ltd., an offshore special purpose company (SPC), and secured by all Diversified Payment Rights of Davivienda El Salvador, as a part of a private placement. The primarily source of repayment under the proposed transaction will be cash flows generated by the Bank under DPRs. However, in case of default, FMO will also have a direct recourse to the Bank. Founded in 1885 as Banco Salvadoreno, DavES is the oldest and currently the second largest bank in El Salvador. With US$ 1.5 bln in total assets, 15.0% market share, a country-wide presence, and a diverse deposit base, DavES is a systemic bank and as such is rated at the country ceiling level of BB+ by Fitch.
What is our funding objective?
This structure allows the borrower to attract wider investor group, achieve longer maturity and/or cheaper cost of funding. DPR is suitable for systemically important banks processing substantial percentage of foreign cash flows in high risk countries that depend strongly on exports and remittances.
Why do we fund this investment?
This transaction is the first in El Salvador since 2006, as commercial demand for DPRs dried up after the 2008-2009 crisis, and will reopen DPR funding channel for the bank and peers in the region.
- Region
- Latin America & The Caribbean
- Country
- El Salvador
- Sector
- Financial Institutions
- Effective date
- 7/21/2015
- End date
- 9/5/2022
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
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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