Banco Multiple BHD, 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 Multiple BHD, S.A. (‘BHD’) is a former FMO client and the third-largest bank in the Dominican Republic. Founded in 1972 as the first mortgage bank, BHD has evolved into a universal bank serving the consumer, SME and Corporate segment. BHD stands out as the pioneer in the country for implementing an ESMS into its credit risk evaluation process, establishing itself as a national frontrunner in this area. BHD is owned for 98.65% by Centro Financiero BHD. The remaining 1.35% are owned by several minority shareholders. Centro Financiero BHD, in turn, is owned for 50.2% by Grupo BHD (a diversified financial conglomerate), 28.1% by Grupo Financiero Leon, and 15.8% by Popular International Bank Inc. (Puerto Rico). The remaining shares are owned by several minority shareholders.
What is our funding objective?
FMO is providing BHD with a 5-year USD 50mln senior unsecured term loan (in LCY equivalent). The proceeds will be directed to women-owned and women-led SMEs.
Why do we want to fund this investment?
FMO’s long-term funding will enable BHD to grow and expand its services to underserved women-owned and women-led SMEs in the Dominican Republic, thereby providing access to financing that will ultimately go towards stimulating economic growth and reducing inequalities in the country.
What is the Environmental and Social categorization rationale?
BHD has been categorized as an E&S Category A client, considering its large exposures to corporates and project finance (IFC PS Triggered Transactions > 300 mln) and exposure to high-risk sectors, including manufacturing, construction, energy generation and transmission, and tourism. The bank has a functioning ESMS in place.
- Website customer/investment
- http://bhd.com.do/homepage-personal
- Region
- Latin America & The Caribbean
- Country
- Dominican Republic
- Sector
- Financial Institutions
- Publication date
- 6/18/2024
- Deadline for feedback
- 8/17/2024
- Total FMO financing
- USD 50.00 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
- Translation
- https://www.fmo.nl/banco-multiple-bhd%2c-s.a.