BANCO INTERNACIONAL S.A.
Status: Approved investmentWhy disclosure?
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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
Banco Internacional is a longstanding client of FMO since 2016. Banco Internacional is the 5th largest bank in Ecuador (Total Assets USD 4.6bln, Equity USD 462mln) with a market share of 8.5% of loans and 8.6% of deposits in the system (Dec-22). Banco Internacional is a top performer of the Ecuadorian banking system in terms of portfolio quality and efficiency. Its business activities focus on corporate and SME loans.
What is our funding objective?
The total facility amounts to USD 50mln and will dedicate 67% to lend green projects and 33% to SMEs, thereby contributing to addressing climate change and economic growth.
Why do we fund this investment?
FMO focuses on fostering sustainable economic growth in emerging market funding. This facility will increase access to finance for green projects and SMEs in Ecuador across various sectors of the economy. Furthermore, FMO ensures its strategic goals by promoting green finance and supporting economic growth in the country. At the same time, FMO catalyzes other investors since the FMO loan is part of a larger syndicated loan facility arranged by the FMO. Finally, given the current macroeconomic situation in Ecuador, the investment is highly additional as it provides a 5-year loan financing.
What is the Environmental and Social categorization rationale?
BI is classified as an FI-A in accordance with FMO’s Sustainability Policy. BI’s portfolio has a considerable exposure to large corporate clients as well as financial exposures to sectors with potential significant and adverse environmental and social risks such as aquaculture, fishing, agribusiness, energy, and industrial manufacturing. Potential impacts and risks related to these sectors could include soil, air, and water pollution, land conversion and biodiversity impacts, poor labour and working conditions, impacts to vulnerable communities, supply chain and resource efficiency aspects. BI’s Environmental and Social (E&S) risks are managed through an existing Environmental and Social Management System (ESMS) operated by a dedicated E&S specialist. As part of the transaction, BI is required to apply the EDFI Exclusion List, Ecuador’s E&S laws and regulations, and the IFC Performance Standards for applicable transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 7/31/2020 | USD 20.00 MLN |
| 11/27/2018 | USD 20.00 MLN |
| 10/20/2022 | USD 30.00 MLN |
| 3/23/2021 | USD 20.00 MLN |
- Website customer/investment
- https://www.bancointernacional.com.ec/
- Region
- Latin America & The Caribbean
- Country
- Ecuador
- Sector
- Financial Institutions
- Publication date
- 2/28/2023
- Effective date
- 6/7/2023
- Total FMO financing
- USD 20.80 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