BANCO AGROMERCANTIL DE GUATEMALA
Status: Completed 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
Banco Agromercantil de Guatemala S.A. (“BAM”) is the fourth largest bank in Guatemala, with a 7.8% market share (based on total assets). Its history dates back to the 1920s when its predecessor, Banco Agricola Mercantil, issued the first Guatemalan currency, the Quetzal. In 2000, BAM was created from the merger of Banco Agricola Mercantil and Banco del Agro. Grupo Bancolombia recently acquired a 40% interest in BAM. Currently, BAM has close to 3,000 employees, about 1.1m clients and 235 branches, spread across the country. It offers commercial banking products to micro-, small- and medium-sized enterprises (MSMEs) and corporates, as well as retail banking services.
What is our funding objective?
The USD 100 mln facility will be used to fund renewable energy loans as well as general portfolio growth (including SME lending). BAM is one of the few banks in Guatemala with project finance expertise and appetite. Over the past years they have built up significant experience with renewable energy (especially hydro) projects. With this long term financing (5 and 7 years), BAM is able to lengthen the maturity profile of its funding base. In addition, the on-lending of the funds to projects and clients in this lower middle income country contributes to private sector growth in Guatemala and the Central American region.
Why do we fund this investment?
Long term funding is scarce in the Guatemalan market, so the tenor offered to BAM with this facility has significant added value. Since the funds will be partly used for renewable energy projects, our funds will contribute to improving the population’s access to clean energy. In addition, FMO was able to catalyze USD 50 mln of commercial funds as well as USD 25 mln from our fellow development finance institution DEG, resulting in a sizeable transaction. FMO also supports the design and implementation of an environmental and social management system at BAM.
- Region
- Latin America & The Caribbean
- Country
- Guatemala
- Sector
- Financial Institutions
- Effective date
- 10/18/2013
- End date
- 1/20/2021
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
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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