BANCO DE FINANZAS
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 de Finanzas (BDF) is the fourth largest bank in Nicaragua with total assets amounting to approximately US$600 million. It serves approximately 125,000 clients and focuses on housing finance for lower- and middle-income households and financing for small- and medium-sized enterprises (SMEs).
What is our funding objective?
FMO provided BDF with a US$17.5 million facility consisting of two tranches: 1) a US$10 million, 10-year tranche to support the financing of housing for lower- and middle-income households; and 2) a US$7.5 million, 5-year tranche to fund SME financing. With this facility, FMO supports BDF's growth in its two core markets. By providing these longer term loans, FMO also helps BDF reduce the tenor mismatch between its assets and liabilities.
Why do we fund this investment?
This transaction provided FMO an opportunity to increase its presence in Nicaragua, one of the poorest countries in the region. BDF's focus on the lower income segment makes it a strong partner in pursuing FMO's inclusive finance goal. We aim to strengthen the relationship over the coming years by gradually increasing our financial and non-financial role in the bank's development.
More investments
| Date | Total FMO financing |
|---|---|
| 10/31/2022 | USD 6.00 MLN |
| 9/29/2014 | USD 4.50 MLN |
- Region
- Latin America & The Caribbean
- Country
- Nicaragua
- Sector
- Financial Institutions
- Effective date
- 9/29/2014
- Total FMO financing
- USD 10.00 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