Banco Promerica S.A.
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective customer?
Banco Promerica, S.A. is a medium size universal commercial bank in El Salvador with total assets of USD 1.4bn, ranking 5th among private banks in the country and serving individuals, SMEs and corporate clients. The bank is part of Grupo Promerica, a regional banking group operating in 9 countries across Latin America and the Caribbean.
What is our funding objective?
The USD 20 mln facility will be used by Banco Promerica to finance green loans (25%) and to provide loans to women-owned and women-led SMEs and other underserved SME (75%), therefore supporting FMO’s climate action (SDG 13) and reducing inequalities (SDG 10) targets.
Why do we want to fund this investment?
Through this facility, FMO realizes its strategic goals to finance SMEs, to reduce gender inequalities and to contribute to a green economy. Banco Promerica plays an important role in providing access to finance to SMEs, a critical segment in supporting job creation and has ambitions to grow its green and gender portfolio. Considering that long-term financing is scarce in El Salvador, the FMO's transaction offers added value by injecting liquidity to a dollarized economy with limited access to international funding.
What is the Environmental and Social categorization rationale?
The bank is classified as E&S Category B in accordance with FMO’s Policy. The bank has a well-functioning ESMS which is comprehensive and integrated with its risk management framework. The risk categorization criteria are aligned with that of the rest of the group and include the national Environmental and Social (E&S) requirements. The categorization criteria also reflect those of the IFC and are considered adequate to identify those projects in Promerica El Salvador’s portfolio with the highest E&S risks. The overall exposure to IFC PS TTs remains <10% of the bank’s total portfolio.
More investments
| Date | Total FMO financing |
|---|---|
| 11/12/2020 | USD 20.00 MLN |
| 5/30/2017 | USD 10.00 MLN |
| 5/30/2017 | USD 5.00 MLN |
- Website customer/investment
- https://www.promerica.com.sv/
- Region
- Latin America & The Caribbean
- Country
- El Salvador
- Sector
- Financial Institutions
- Publication date
- 6/13/2024
- Deadline for feedback
- 7/13/2024
- Total FMO financing
- USD 20.00 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