SUDAMERIS BANK S.A.E.C.A.
Status: Approved investmentWhy disclosure?
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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
Sudameris Bank S.A.E.C.A. ("Sudameris") is a medium-sized universal bank in Paraguay ranking 4th in the local banking sector in terms of total loans with a portfolio of USD 1.8 billion and 11% market share. The bank offers a wide range of financial products and services primarily to SME- and corporate clients and, to a small extent, to retail-clients. The bank was established in 1958 and is a fully licensed commercial bank. As a primarily domestic bank, the loan book is reflecting the Paraguayan economy with a focus on agribusiness, representing 35% of the total portfolio (agriculture & livestock).
What is our funding objective?
FMO's funding is used by Sudameris to provide loans to sub-borrowers doing green investments, in line with FMO's green lending criteria, aimed at energy efficiency and renewable energy.
Why do we fund this investment?
Sudameris has been a relevant partner for FMO as a founding member of the Paraguayan sustainable finance roundtable, 'Mesa de Finanzas Sostenibles'. The bank's good environmental and social practices, its focus on commercial clients and an already sizeable portfolio of green investments make it an ideal partner towards FMO’s Climate Action goals and continue to promote green investments in Paraguay.
What is the Environmental and Social categorization rationale?
The client has been categorised as Category A in accordance with FMO’s Sustainability Policy. Given the large proportion of loans to clients in the agriculture, cattle and agroindustry sectors, the bank’s investments are deemed to have potential, significant, and adverse environmental and social risks and/or impacts, such as land conversion, greenhouse gas emissions and pollution. Sudameris is an existing client and FMO will continue to require the application of the EDFI Exclusion List, Paraguay E&S laws and regulations and the IFC Performance Standards Framework for the identified triggered transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 11/18/2020 | EUR 0.03 MLN |
| 10/20/2020 | USD 40.00 MLN |
| 12/19/2019 | USD 40.00 MLN |
| 9/19/2018 | 7.5% |
| 6/17/2022 | USD 10.00 MLN |
| 8/14/2018 | EUR 0.03 MLN |
| 1/4/2021 | USD 10.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Paraguay
- Sector
- Financial Institutions
- Publication date
- 11/18/2022
- Effective date
- 12/16/2022
- Total FMO financing
- USD 40.00 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