BANCO COMAFI S.A.
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 Comafi is a mid-sized universal bank in Argentina that offers a full range of banking services to individuals, SMEs and corporates clients, and a leading provider of long term financing through financial and operational leasing. Founded in 1985 as a broker house, the bank has successfully grown into a diversified bank, with presence in 8 provinces through 65 branches, gross loans and leases of USD 1.1 billion and more than 500,000 clients.
What is our funding objective?
This loan will allow Banco Comafi to continue growing in the SME segment and provide much needed long-term finance for its clients, thereby supporting job creation and economic and social development.
Why do we fund this investment?
This transaction is FMO’s first loan to a financial institution in Argentina, after the new government took office and initiated an economic transformation to attract much needed private investments and resume economic development. Aligned with our aim to contribute to local prosperity, FMO’s loan will be used for on-lending to SMEs, a segment that extensively lacks financing for working capital and investments. In addition, FMO’s finance will help the bank improve its balance sheet, by providing long tenor financing in USD and local currency, as 50% of the facility is provided in Argentine Pesos. According to the World Bank, domestic credit to private sector was 14% of GDP in Argentina in 2016, one of the lowest in the region.
What is the Environmental and Social categorization rationale?
The bank has been categorised as Category C in accordance with FMO’s Sustainability Policy. Its portfolio consists mainly of loans to individuals and SMEs. The bank has a limited participation in high risk sectors (mainly oil & gas and mining) and does not finance large scale projects, providing primarily working capital to its larger clients. Limited E&S risks are well mitigated by compliance with local regulation on environmental and social aspects.
More investments
| Date | Total FMO financing |
|---|---|
| 11/24/2020 | USD 10.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Argentina
- Sector
- Financial Institutions
- Effective date
- 10/30/2017
- End date
- 11/24/2020
- 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) - C