Banco Rio S.A.E.C.A.
Status: Investment in contracting phaseWhy 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 prospective customer?
Banco Rio is a small but growing universal bank in Paraguay, with a market share of 2.5% in total assets (Q1-24). Its core business revolves around extending credit to SMEs and corporates across diversified sectors, the most relevant being wholesale commerce and agriculture. Banco Rio was born in 2019 as a result of the merger of Financiera Rio (a non-banking financial institution focused on serving urban SMEs) and Banco Itapua (a small bank with > 40 years of history focusing on the agribusiness sector and former client of FMO). Banco Rio?s ownership is diversified. The largest individual shareholders are Cristian Jose Heisecke Velazquez (8.5%), Julio Alberto Squef Gomez (7.6%), Voirons S.A (6.8%), and Oscar Enrique Diesel Junghanns (6.1%). The remaining shares are owned by a large base of shareholders with less than 5% ownership each.
What is our funding objective?
The USD 45mln facility will be used by Banco Rio to provide loans to SMEs active in primary production or the agricultural value chain.
Why do we want to fund this investment?
By providing scarce finance to agricultural SMEs, the transaction will positively impact economic growth and job creation in the country, focusing on the creation of income and livelihood opportunities in rural areas, aiming to address the rural-urban divide.
What is the Environmental and Social categorization rationale?
Banco Rio has been categorized as an E&S Category A. Key E&S risks are associated with the bank's focus on the agricultural-, livestock-, and agro-industrial sectors. While these sectors have promoted significant economic development in the country, they are also related to multiple environmental concerns and are particularly vulnerable to the impacts of climate variability, climate change, and deforestation. Banco Rio has an E&S Management System adequate to this level of risk and actively focuses on mitigating these risks. The bank has an ESMS that is in line with FMO's requirements and is a member of Paraguay's Sustainable Finance Roundtable, thus it is also aligned with its voluntary requirements.
More investments
| Date | Total FMO financing |
|---|---|
| 6/8/2021 | USD 15.00 MLN |
- Website customer/investment
- https://www.rio.com.py/
- Region
- Latin America & The Caribbean
- Country
- Paraguay
- Sector
- Financial Institutions
- Publication date
- 8/2/2024
- Deadline for feedback
- 10/1/2024
- Total FMO financing
- USD 45.00 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
- Translation
- https://www.fmo.nl/banco-r%c3%ado