Banco Solidario S.A.
Status: Investment in contracting phaseWhy disclosure?
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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 prospective customer?
Banco Solidario S.A. (“Solidario”) is one of the largest microfinance bank in Ecuador. Since its inception in 1994, Solidario has maintained a strong social mission, aiming to contribute to the development and quality of life of micro-entrepreneurs and salaried workers through financial products and services specifically adapted to their needs.
What is our funding objective?
FMO’s funding will be fully allocated for on-lending to women-owned MSMEs. This objective supports SDG 8 by promoting sustainable financing and economic growth for micro-entrepreneurs in Ecuador, and SDG 10 by allocating all proceeds to women-owned businesses, aiming to reduce inequalities.
Why do we want to fund this investment?
As one of the largest microfinance bank in Ecuador, Solidario plays a crucial role in financial inclusion and development, aligning with FMO’s mission. Additionally, FMO provides essential long-term financing and liquidity to Ecuador’s dollarized economy, which has limited access to international funding.
What is the Environmental and Social categorization rationale?
Solidario is categorized as E&S Cat. C due to the nature of its portfolio (microfinance and consumer finance). Consumer Protection Cat. B due to its business activities and adequate adherence to Consumer Protection practices, as evidenced by the Gold level CPP certification obtained from Cerise SPTF in 2023.
More investments
| Date | Total FMO financing |
|---|---|
| 6/17/2021 | USD 20.00 MLN |
| 10/13/2021 | EUR 0.06 MLN |
| 10/24/2024 | USD 10.00 MLN |
- Website customer/investment
- https://www.banco-solidario.com/
- Region
- Latin America & The Caribbean
- Country
- Ecuador
- Sector
- Financial Institutions
- Publication date
- 9/19/2024
- Deadline for feedback
- 10/19/2024
- 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) - C