Promerica Financial Corporation
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
Promerica Financial Corporation (PFC) is a regional banking group established in 1991 with subsidiaries in Central America, the Caribbean and Ecuador. PFC has consolidated total assets of USD 19.8bn and a loan portfolio of USD 12.7bn as of December 2022. PFC is an existing customer of FMO.
What is our funding objective?
The USD 25mln FMO financing is part of a USD 85mln syndicated facility with a maturity of 10 years. The loan will be used to support Promerica mainly in Costa Rica and Dominican Republic, as it will be used for capital increases in local subsidiaries in Ecuador, Panama, Guatemala, El Salvador, Costa Rica and the Dominican Republic via Equity Injections or Subordinated loans (Tier 2 loans). The facility will also be used to refinance the existing syndicated loan between FMO and PFC which is maturing in 2024.
Why do we fund this investment?
By providing financing to strengthen the capital position of Promerica in Ecuador, Panama, Guatemala, El Salvador, Costa Rica and Dominican Republic, the transaction is intended to contribute to FMO’s strategic goal to create jobs in these markets.
What is the Environmental and Social categorization rationale?
The E&S risk category is FI-A. Contextual risks inherent to the countries in which the Group has operations relate to human rights, indigenous peoples, migration, land rights, climate, natural disasters, water & air pollution, habitat conversion, supply chain, conflicts with unions, and negative NGO / media attention, weak local E&S regulatory frameworks, which are latent in the Central America region. The Group has limited exposure to high-risk sectors such as mining and power, the larger exposure to high-risk sector corresponds to agriculture. The group is compliant with FMO Exclusion List. PFC is currently rolling out a regional ESMS, which includes oversight of the IFC PS TTs and which will be adapted to the environmental and social risks in each country.
More investments
| Date | Total FMO financing |
|---|---|
| 11/17/2022 | EUR 0.01 MLN |
| 3/7/2014 | USD 45.00 MLN |
- Website customer/investment
- https://www.grupopromerica.com/
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Financial Institutions
- Publication date
- 5/1/2023
- Effective date
- 12/6/2023
- Total FMO financing
- USD 25.00 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