Banco Promerica S.A.
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 Promerica S.A. is a medium-sized universal commercial bank in El Salvador with total assets of USD 1.4bn, ranking fifth among private banks in the country. Serving individuals, small and medium-sized enterprises (SMEs) and corporate clients, the bank is part of Grupo Promerica, a regional banking group operating in nine countries across Latin America and the Caribbean.
What is our funding objective?
The USD 20mln supports Banco Promerica's financing of green loans (25%) and the bank's loan provision to women-owned, women-led and other underserved SMEs (75%), therefore supporting FMO’s climate action (SDG 13) and reducing inequalities (SDG 10) targets.
Why do we fund this investment?
Through this facility, FMO realizes its strategic goals to finance SMEs, to reduce gender inequalities and to contribute to a green economy. Banco Promerica plays an important role in providing access to finance to SMEs, a critical segment in supporting job creation, and has ambitions to grow its green and gender portfolio. Considering that long-term financing is scarce in El Salvador, this transaction offers added value by injecting liquidity into a dollarized economy with limited access to international funding.
What is the Environmental and Social categorization rationale?
The bank is classified with E&S Category B in accordance with FMO’s Policy. The bank has a well-functioning environmental and social management system (ESMS), which is comprehensive and integrated with its risk management framework. The risk categorization criteria are aligned with those of the other banking group members and include the national Environmental and Social (E&S) requirements. The categorization criteria also reflect the IFC Performance Standards (PS) and are considered adequate to identify the projects in Promerica El Salvador’s portfolio with the highest E&S risks. The overall exposure to the IFC PSs remains less than 10% of the bank’s total portfolio.
More investments
| Date | Total FMO financing |
|---|---|
| 11/12/2020 | USD 20.00 MLN |
| 5/30/2017 | USD 10.00 MLN |
| 5/30/2017 | USD 5.00 MLN |
- Website customer/investment
- https://www.promerica.com.sv/
- Region
- Latin America & The Caribbean
- Country
- El Salvador
- Sector
- Financial Institutions
- Publication date
- 6/13/2024
- Effective date
- 10/7/2024
- Total FMO financing
- USD 20.00 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