BANCO PROMERICA S.A (GUATEMALA)
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
Banco Promerica S.A. (Promerica GUA) started operating in 2007 following the acquisition of Bancasol, an institution founded in 1993. Promerica GUA has since grown into a mid-sized universal bank with total assets over USD 1.8bln. Promerica GUA is part of the Promerica Group, a financial group of Nicaraguan origin which currently operates in 9 different countries across Latin America and the Caribbean. The group is a strategic partner of FMO.
What is our funding objective?
FMO has arranged an A/B syndicated loan of USD 45mln, split into an A tranche of USD 28 mln funded by FMO and funds managed by FMO, and a B-tranche of USD 17 mln with participations from other impact investors. Of the total USD 45 mln, USD 10mln to be on-lent according to FMO’s Master Green List and USD 35mln will be a SME tranche. In Dec 2021, an additional USD 5mln was activated as part of an uncommitted line signed in 2020. The USD 5mln will be used to on-lend to SMEs.
Why do we fund this investment?
FMO has a long-term strategic partnership with Promerica GUA and with the Promerica Group. The SME tranche aligns with FMO’s objective to support economic growth, while the green tranche contributes to FMO’s goal to combat climate change.
What is the Environmental and Social categorization rationale?
Based on the bank’s portfolio composition, the investment has been assessed as Category B, in accordance with FMO’s Sustainability Policy. Promerica GUA has an existing ESMS. Compliance with local regulations and IFC Performance Standard (PS) framework for IFC PS-triggered transactions will be required.
More investments
| Date | Total FMO financing |
|---|---|
| 11/3/2020 | USD 17.00 MLN |
| 10/7/2024 | USD 5.00 MLN |
| 10/7/2024 | USD 10.00 MLN |
| 11/7/2024 | USD 30.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Guatemala
- Sector
- Financial Institutions
- Publication date
- 11/1/2019
- Effective date
- 11/3/2020
- Total FMO financing
- USD 28.00 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