IDB Invest supports credit expansion to SME in Ecuador with Produbanco
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, signed a $30 million loan with Banco de la Producción, S.A. - Produbanco, the third largest bank in Ecuador ranked by asset size.
This is the first medium-term financing that IDB Invest provides to Produbanco and is aimed at channeling resources to expand its portfolio of small and medium-sized enterprises (SMEs) and for Produbanco’s Green Credit Line. With this operation, Produbanco will be able to increase access to financing under adequate conditions for the SME segment in Ecuador, and also expand financing for green projects promoted by them.
The loan, with a tenor of five years, includes $25 million from IDB Invest and $5 million mobilized from the Chinese Fund for Co-financing for Latin America and the Caribbean. Additionally, the financial package includes an IDB Invest subordinated loan of up to $20 million.
Produbanco’s Green Credit Lines program promotes environmentally friendly production, through the financing of energy efficiency projects or updates in machinery, with the aim of improving its infrastructure and encouraging industry growth. In this way, it contributes to improve sustainable finance in the country with a positive environmental impact.
The financing is complemented by technical assistance from IDB Invest’s GREENPYME program, whose main objective is to support small and medium-sized business clients of banks, through training workshops on energy efficiency and renewable energy issues. In addition, direct and free support will also be provided to potential Produbanco customers, carrying out water management diagnostics or energy efficiency issues. These diagnostics will allow clients to identify a series of improvements that would allow them to reduce costs, and thus be more competitive.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About Produbanco - Grupo Promerica
Produbanco is a Bank with great experience, has a broad portfolio of products and services to efficiently serve the corporate, business, SME and people sectors, has a team of multidisciplinary collaborators and committed to the quality of service to its customers. Produbanco celebrates 40 years of successful trajectory in November 2018 and has been awarded several local and international recognitions that ratify its prestige; among them, the EKOS magazine that develops the Ekos Customer Satisfaction Index highlighted Produbanco with the first place in customer service (2016-2017); the specialized magazine Latin Finance named Produbanco as the Best Bank of Ecuador (2017); Global Finance recognized it for the second consecutive year as Best Bank of Ecuador (2017-2018); the magazine The Banker of the English group Financial Times, granted him for the tenth time, Bank of the Year Ecuador (2002, 2007, 2009-2015, 2017); the English magazine International Banker, awarded him the distinctions as Best Commercial Bank Ecuador (2017) and Best Bank in Innovation of Retail Banking Ecuador (2017-2018). Produbanco is worthy of the AAA- risk rating by the BankWatch Ratings and PCR - Pacific Credit Ratings.