Financiera Finexpar S.A.E.C.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
Financiera Finexpar S.A.E.C.A (“Finexpar”) is the largest Non-Bank Financial Institution (NBFI) in Paraguay with a total loan portfolio of USD 280mln (Dec-22). The NBFI’s core business is providing credit to SME clients across sectors, the most relevant being agriculture (18.6%), wholesale trade (13.6%), and cattle (10.1%). Finexpar is a Paraguayan regulated entity since 1989.
What is our funding objective?
FMO’s funding will be used by Finexpar to provide loans to SMEs active in primary production or the agricultural value chain.
Why do we fund this investment?
Providing financing to small and medium enterprises in Paraguay will contribute to FMO’s strategic goal of supporting economic growth and job creation. Providing scarce finance to agricultural SMEs supports the creation of income and livelihood opportunities in rural areas, thereby helping to reduce inequalities between urban and rural areas.
What is the Environmental and Social categorization rationale?
The client has been categorized as Category B in accordance with FMO’s Sustainability Policy. Given the NBFI’s primary exposure to SMEs, contextual risk is limited. Environmental and social risk factors (such as land conversion, greenhouse gas emissions, and pollution) are more inherent to large-scale agricultural operations. Finexpar has no exposure to IFC PS TTs. The NBFI will be required to apply the EDFI Exclusion List and Paraguay’s E&S laws and regulations.
More investments
| Date | Total FMO financing |
|---|---|
| 6/16/2023 | USD 10.00 MLN |
- Website customer/investment
- https://www.finexpar.com.py
- Region
- Latin America & The Caribbean
- Country
- Paraguay
- Sector
- Financial Institutions
- Publication date
- 5/1/2023
- Effective date
- 6/16/2023
- Total FMO financing
- USD 25.00 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