Banco Pichincha 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
A longstanding client of FMO since 2011, Banco Pichincha (“the Bank”, “Pichincha”) is the largest universal bank in Ecuador, with Total assets amounting to USD 15.8bln and Equity of USD 1.5bln). The bank has a loans market share of 27% and a deposits share of 28% in the banking system (June 2023). Its business activities are centered in three main segments: personal banking, commercial banking and microfinance.
What is our funding objective?
FMO has arranged a syndicated facility and takes USD 23.3 mln for its own account. The facility is subordinated such that it qualifies as Tier 2 capital for Banco Pichincha regulatory capital. The proceeds of the loan will further be earmarked to finance women-owned SMEs, female microentrepreneurs and Green loans.
Why do we fund this investment?
FMO’s funding will increase access to finance for women-owned SMEs, women microentrepreneurs and Green projects in Ecuador in various sectors of the economy. Through this subordinated loan facility, FMO realizes its strategic goals to support female entrepreneurs and promote Green finance in Ecuador, and to catalyze other investors, as the loan facility is arranged by FMO.
What is the Environmental and Social categorization rationale?
Pichincha is an FI E&S category B client with IFC PS Triggered Transactions (4.3% of gross loan portfolio), given its business activities and portfolio exposure, and has a functioning ESMS in place. One of Pichincha’s main strategic pillars is its commitment to pioneering financial inclusion and sustainability for which it received several awards. As a result, the bank is committed to continuously grow its green line credit portfolio, implement its gender finance strategy and continuously improving its ESG standards and practices.
More investments
| Date | Total FMO financing |
|---|---|
| 11/28/2022 | USD 25.00 MLN |
| 10/24/2024 | USD 25.00 MLN |
| 8/16/2022 | USD 20.00 MLN |
| 8/16/2022 | USD 20.00 MLN |
- Website customer/investment
- https://www.pichincha.com/
- Region
- Latin America & The Caribbean
- Country
- Ecuador
- Sector
- Financial Institutions
- Publication date
- 9/22/2023
- Effective date
- 12/11/2023
- Total FMO financing
- USD 23.29 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