BANCO DE LA PRODUCCIÓN, S.A. (BANPR
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
Banpro is the largest bank in Nicaragua by assets and an existing client of FMO since 2006. The bank is part of the Promerica Group, a long-standing partner of FMO and it plays an important role in the economic development of the country as two thirds of its loan portfolio is dedicated to corporate and SME lending.
What is our funding objective?
USD 15mln of the facility will be earmarked for lending to green clients and projects in Nicaragua, in accordance with FMO criteria. Additionally, USD 5mln is used to finance SME sub-loans to Women-Owned Enterprises. The purpose of the remaining USD 5mln (uncommitted) will be defined at a later stage and could be lending to green projects and/or women financing.
Why do we fund this investment?
The facility fits with FMO’s ambitions to improve women rights and access to economic resources, reduce inequalities and contribute to a green economy. FMO has partnered with Banpro to promote green financing since 2014, since then, Banpro has received green lines from other funders, has established a dedicated green team and has managed to generate a well-diversified green portfolio. This new FMO green line will allow the bank to further grow its green portfolio and to refine its green product offering. In addition, FMO will support Banpro in the launching of its women financing proposition in the country.
What is the Environmental and Social categorization rationale?
Banpro has been assigned an E&S risk category of FI-A due to the number of IFC PS TT in its portfolio. The IFC PS TTs include exposures to large-scale agriculture, energy generation, construction, real estate, manufacture, and the service sector. Exposure to high-risk sectors include agriculture and energy. The transaction includes an Environmental and Social (E&S) Action Plan that includes the adjustments to reinforce these high-risk transactions management, with the objective of strengthening the bank's E&S risk management capacity as well as the grievance mechanism.
More investments
| Date | Total FMO financing |
|---|---|
| 1/26/2018 | USD 15.00 MLN |
| 12/2/2020 | EUR 0.13 MLN |
| 4/23/2024 | USD 15.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Nicaragua
- Sector
- Financial Institutions
- Publication date
- 7/21/2022
- Effective date
- 11/21/2022
- 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) - A