Banco Promerica S.A.
Status: Proposed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
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-sized commercial bank in Guatemala with a solid customer base in the consumer segment and expanding presence in the corporate and Small and Medium Enterprises (SME) sectors. As of August 2024, Promerica Guatemala ranks #7 out of 18 banks in the country with total assets of USD 4.01bln and equity of USD 409mln.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 facility concerns a USD 50mln syndicated transaction of which USD 30mln will be provided by FMO as A-Lender. The funds will be used by Banco Promerica Guatemala to finance green loans (25%) and to provide loans to women-led SMEs (25%), thereby supporting FMO's climate action (SDG13) and reducing inequalities (SDG10) 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. FMO's financing provides a great value-add given that access to large, long-tenor funding remains scarce in Guatemala. FMO further assumes a catalytic role, increasing and scaling the impact of the transaction.
What is the Environmental and Social categorization rationale?
The project is classified as E&S Category B in accordance with FMO’s Policy. The bank has a well-functioning environmental and social management system 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 overall exposure to IFC Performance Standards Triggered Transactions remains below <10% of the bank’s total portfolio.
More investments
| Date | Total FMO financing |
|---|---|
| 11/3/2020 | USD 28.00 MLN |
| 11/3/2020 | USD 17.00 MLN |
| 10/7/2024 | USD 10.00 MLN |
| 10/7/2024 | USD 5.00 MLN |
- Region
- Latin America & The Caribbean
- Country
- Guatemala
- Sector
- Financial Institutions
- Publication date
- 10/8/2024
- Deadline for feedback
- 11/7/2024
- Total FMO financing
- USD 30.00 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