BANCO BOLIVARIANO C.A.
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
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
Bolivariano is a locally-owned Universal Bank with a strong regional presence in Guayaquil and the coastal region of Ecuador. The bank has a long track record (41 years of operations) and as of March 2020, it has TAs of USD 3.6 bln and ranks #5 in the sector, with a stable share of 8% TAs.
What is our funding objective?
The facility will be subordinated such that it qualifies as Tier 2 capital for Banco Bolivariano regulatory capital. The proceeds of the loan will further be earmarked to finance SMEs.
Why do we fund this investment?
FMO will be highly additional by injecting long tenor financing to a bank in a sector with limited access to international funding, including long tenor financing. The bank provides short and long tenor financing to corporates and SMEs, with up to 8 years tenor. Since the bank’s funding is mostly short term (93% <1 year), FMO’s loan would improve the bank’s funding structure and allow to increase long tenor loans, currently financed mostly with equity.
What is the Environmental and Social categorization rationale?
The client has been categorised as Category B in accordance with FMO’s Sustainability Policy. The Client’s activities are deemed to have minimal or no adverse environmental and social risks and/or impacts. As part of the transaction, Banco Bolivariano will be required to implement and apply the EDFI Harmonized E&S Procedures and Standards for Financial Institutions and continue to comply with Ecuadorian E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 7/22/2022 | USD 30.00 MLN |
| 9/21/2020 | USD 10.00 MLN |
| 12/14/2017 | USD 30.00 MLN |
- Website customer/investment
- http://www.bolivariano.com
- Region
- Latin America & The Caribbean
- Country
- Ecuador
- Sector
- Financial Institutions
- Publication date
- 7/30/2020
- Effective date
- 9/21/2020
- 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) - B