BANCO PICHINCHA C.A.
Status: Completed investmentWhy disclosure?
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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 Pichincha is Ecuador's largest universal bank with total assets of around US$ 10 bln. The bank ranks first in branch and ATM networks extensiveness, with over 300 branches and operations in all 24 provinces of Ecuador. In addition, Banco Pichincha is the largest player in the micro-, small- and medium-sized enterprise (MSME) market. Its portfolio consists of 39% corporate/SME finance, 38% consumer finance, 12% microfinance and 11% housing finance. The bank has subsidiaries in Peru, Colombia, and Spain.
What is our funding objective?
FMO's 2014 US$ 20 mln senior unsecured loan is directed to the MSME portfolio of Banco Pichincha. The Actiam-FMO SME Fund joined the facility for US$ 4 mln. The purpose of FMO"s funding is to strengthen Pichincha"s capital base with long term funding and to foster the development of the bank's loan portfolio for MSMEs in Ecuador.
Why do we fund this investment?
Due to high country risk FMO focuses on regulated entities with a good track record in Ecuador. Banco Pichincha suffered from the crisis of 2000, but nevertheless remains the leading bank of Ecuador with good performance over the years. By financing Banco Pichincha, FMO is supporting a leading financial institution in Latin America and the Caribbean. FMO's loan offers Banco Pichincha scarce long-term funding. The transaction catalyzed the involvement of the Actiam-FMO SME fund. On the non-financial side, the transaction supports a sustainability market-maker, as Banco Pichincha has shown to have interest in doing a greenline. As a first step, FMO plans to assist Pichincha in developing their environmental and social management system.
More investments
| Date | Total FMO financing |
|---|---|
| 12/11/2023 | USD 23.29 MLN |
| 11/28/2022 | USD 25.00 MLN |
| 10/24/2024 | USD 25.00 MLN |
| 8/16/2022 | USD 20.00 MLN |
- Website customer/investment
- http://www.pichincha.com
- Region
- Latin America & The Caribbean
- Country
- Ecuador
- Sector
- Financial Institutions
- Effective date
- 9/29/2014
- End date
- 8/16/2022
- Total FMO financing
- USD 20.00 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