Project detail - Banco Solidario S.A.

Banco Solidario S.A.

Status: Investment in contracting phase
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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 Solidario S.A. (“Solidario”) is one of the largest microfinance bank in Ecuador. Since its inception in 1994, Solidario has maintained a strong social mission, aiming to contribute to the development and quality of life of micro-entrepreneurs and salaried workers through financial products and services specifically adapted to their needs.

What is our funding objective?

FMO’s funding will be fully allocated for on-lending to women-owned MSMEs. This objective supports SDG 8 by promoting sustainable financing and economic growth for micro-entrepreneurs in Ecuador, and SDG 10 by allocating all proceeds to women-owned businesses, aiming to reduce inequalities.

Why do we want to fund this investment?

As one of the largest microfinance bank in Ecuador, Solidario plays a crucial role in financial inclusion and development, aligning with FMO’s mission. Additionally, FMO provides essential long-term financing and liquidity to Ecuador’s dollarized economy, which has limited access to international funding.

What is the Environmental and Social categorization rationale?

Solidario is categorized as E&S Cat. C due to the nature of its portfolio (microfinance and consumer finance). Consumer Protection Cat. B due to its business activities and adequate adherence to Consumer Protection practices, as evidenced by the Gold level CPP certification obtained from Cerise SPTF in 2023.

More investments

Date Total FMO financing
6/17/2021 USD 20.00 MLN
10/13/2021 EUR 0.06 MLN
10/24/2024 USD 10.00 MLN
Website customer/investment
https://www.banco-solidario.com/
Region
Latin America & The Caribbean
Country
Ecuador
Sector
Financial Institutions
Publication date
9/19/2024
Deadline for feedback
10/19/2024
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)
C