Banesco Banco Multiple 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?
Banesco Banco Multiple (“Banesco”, or "the Bank") is an existing customer of FMO and a medium-sized commercial bank in the Dominican Republic (DR). The Bank has total assets of USD 950mln and a loan portfolio of USD 445mln as of September 2024. Banesco provides loans to retail (41%) and commercial (59%) clients, with a diversified portfolio of commercial clients across various sectors in the country.
What is our funding objective?
The USD 40mln (USD 20mln committed, USD 20mln uncommitted) senior term facility is a 5-year loan that is to be on-lent to small- and medium-sized enterprises (SMEs), microfinance institutions (MFIs), and eligible Green projects. The facility is earmarked towards financing MFIs, Women or Young-owned/led SMEs (at least 40% of the facility), Green-eligible projects (at least 30% of the facility), and the remaining towards any SME. This loan will help Banesco grow its SME portfolio and support financial inclusion, Moreover, the Green tranche will be on-lend to green projects in line with FMO’s green lending criteria, aimed at renewable energy and energy efficiency in the DR.
Why do we want to fund this investment?
Banesco plays an important role in providing access to finance to SMEs, a critical segment in supporting job creation. Through this facility, FMO realizes its strategic goals to finance SMEs and MFIs. Additionally, by providing financing to SMEs, green projects, and women-owned and youth-owned SMEs and MFIs in the Dominican Republic, the loan will contribute to FMO’s strategic goal to create jobs, reduce inequalities, and reduce GHG emissions. Due to the financing of women-owned/youth-owned SMEs/MFIs in the DR, this transaction qualifies for a 40% Reducing Inequalities label, and due to financing Green-eligible projects, this facility qualifies for a 30% Green label.
What is the Environmental and Social categorization rationale?
Banesco is classified as an E&S risk category FI-B per FMO’s Policy. The Bank has limited exposure to E&S high-risk sectors and has an SME focus. Banesco's Environmental and Social (E&S) risks are managed through an existing Environmental and Social Management System (ESMS), operated by a dedicated E&S specialist. Banesco applies the EDFI Exclusion List, the Dominican Republic's E&S laws and regulations, and the IFC Performance Standards for applicable project transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 11/20/2020 | USD 12.00 MLN |
| 12/5/2019 | USD 15.00 MLN |
- Website customer/investment
- https://www.banesco.com.do/
- Region
- Latin America & The Caribbean
- Country
- Dominican Republic
- Sector
- Financial Institutions
- Publication date
- 2/18/2025
- Deadline for feedback
- 3/20/2025
- 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