BANCO DE AMERICA CENTRAL, S.A
Status: Approved investmentWhy disclosure?
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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 de América Central, S.A. (BAC) is a large commercial bank in Guatemala with a strong presence in the small and medium-sized company sector (SME) and among corporate clients in the country. The Bank has total assets amounting to USD 4.7 billion and a loan portfolio of USD 3.4 billion as of March 2022.
What is our funding objective?
The USD 200 million senior term facility focuses on supporting SMEs and local Green loans in Guatemala. BAC will use the SME funding to expand its SME portfolio, while the Green loans will be on-lent to green projects in line with FMO’s green lending criteria. These loan purposes fit perfectly with the ongoing strategy of BAC and their Group to become a more sustainable financial institution and to support local SME clients.
Why do we fund this investment?
Providing financing to SMEs and green projects in Guatemala aligns with FMO’s strategic goal to support job creation, reduce GHG emissions and expand actions against climate change effects. Considering the size of this facility and BAC's loan portfolio for SMEs and corporate clients, there will be a significant contribution to advance green finance and environmental protection among private sector entities in Guatemala. Additionally, funding SMEs will be essential in weathering the impact of the international economic slowdown and energy crisis.
What is the Environmental and Social categorization rationale?
The transaction for BAC has been classified as category A per FMO’s Sustainability Policy. The Bank’s portfolio includes financial exposures to sectors with potentially high environmental and social risks such as agribusiness, energy, and industrial manufacturing. As part of this investment, the Bank will implement an environmental and social action plan to enhance its environmental and social management policies and procedures with the support of an external consultant.
More investments
| Date | Total FMO financing |
|---|---|
| 11/29/2024 | USD 0.02 MLN |
| 9/29/2024 | USD 90.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Guatemala
- Sector
- Financial Institutions
- Publication date
- 9/9/2022
- Effective date
- 11/24/2022
- Total FMO financing
- USD 200.00 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) - A