Banco de la Producción, S.A.
Status: Completed investmentWhy 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 customer
Banpro is one of the three large banks of Nicaragua, and has been an FMO client since 2006. Banpro is 62% owned by Promerica Financial Corporation (PFC). It is a universal bank and has the largest market share in agricultural loans.
What is our funding objective?
Based on a portfolio scan for green investments, Banpro has identified opportunities for a greenline. The funding will be used to “green” the value chains of four sectors: coffee, sugar, peanuts and rice. The greenline will finance small-scale renewable energy investments such as the use of agricultural waste for energy generation, water efficient coffee processing equipment or drip irrigation.
Why do we fund this investment?
Productive capital stock in Nicaragua (farms, equipment, processing capacity) tends to be outdated as a result of decades of underinvestment due to political instability. Thanks to improved conditions in the last few years, demand for private sector investment is picking up. This has created opportunities to upgrade to more modern equipment and agricultural practices, which lead to gains in productivity combined with reduction in environmental footprint. The four sectors that are eligible for the greenline comprise 37% of the country’s total exports and are an important source of employment in the poorer regions. By contributing to the modernization and greening of the capital stock of these sectors, FMO will ensure long term, green development impact. This is a demand-driven greenline, the first for FMO. FMO partnered with Banpro to structure this financing and to develop appropriate reporting templates.
More investments
| Date | Total FMO financing |
|---|---|
| 11/21/2022 | USD 20.00 MLN |
| 1/26/2018 | USD 15.00 MLN |
| 12/2/2020 | EUR 0.13 MLN |
- Region
- Latin America & The Caribbean
- Country
- Nicaragua
- Sector
- Financial Institutions
- Effective date
- 2/17/2014
- End date
- 4/23/2024
- Total FMO financing
- USD 15.00 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) - A