Company name

Banco de las Microfinanzas Bancamía S.A. ("Bancamía")

Project number

11619-02

FI-3 operations are those where the risk potential is considered low: the FI’s current or future portfolio consists of financial exposure to business activities that predominantly have minimal or no adverse environmental and social impacts.

E&S category
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FI-3

Country

Colombia

Sector

Financial Institutions

Status

Inactive

Disclosed date

08/11/2016

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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11/22/2016

Approval date

11/22/2016

Signed date

N/A

Sponsoring entity

N/A

Team leader

Echeverri, Ana Rosa

Investment type

Financing requested

N/A

Syndicated amount

USD $ 36,600,000

Financing amount

USD $ 20,000,000

Currency

USD

Project scope and objective

The Project consists of a senior unsecured IIC-led A/B loan of up to US$56.6 million or its equivalent in Colombian Pesos (“COP”) to Bancamía S.A. (“Bancamía). The A loan will be for up to US$20 million equivalent in COP with an expected tenor of up to five years. The B Loan will be raised on a best efforts basis for up to US$35 million equivalent in COP and a tenor of up five years, depending on the market appetite and tenor preferences of the B lenders. The Project will also include a parallel financing of up to US$1.6 million from the Climate Smart Agriculture Fund (“CSAF”) and non reimbursable technical assistance funds of up to US$100,000.


The Project’s objective is to finance the expansion of Bancamía’s portfolio to provide greater access to financing for small-scale farmers and microentrepreneurs in Colombia. The proceeds from the A/B loan will provide financing to rural small-scale farmers for working capital and productive investment needs; as well as to finance the working capital needs of microentrepreneurs. The CSAF tranche will be used to fund a new financial product intended to support small-scale farmers in adopting ecosystem-based measures to adapt to climate change, which enhance their productivity. With the non-reimbursable funds, the IIC will offer technical assistance for designing the new financial product dedicated to the small farmer investment portfolio and for establishing the differentiated tenors of the CSAF tranche.


As a result of the IIC financing, Bancamía is expected to provide loans to approximately 35,000 rural microentrepreneurs and smallholder farmers for commercial and agricultural activities respectively, with a large majority (>70%) of the clients expected to be considered from the “vulnerable” population segment. This would be Bancamía’s first syndicated A/B Loan in COP, and the IDB Group’s first loan operation with Bancamía S.A.
Bancamía S.A. is the second largest microfinance banking entity in Colombia. It is regulated by the Finance Superintendence (Superintendencia Financiera, “SFC”), Bancamía is the result of the integration of Fundación Microfinanzas BBVA, the Corporación Mundial de la Mujer Colombia (“CMMC”), and the Corporación Mundial de la Mujer-Medellín (“CMMM”). Bancamía currently serves 810,000 clients, 57% of which are women, and employs 3,583 people.
Bancamía has a presence in 29 of Colombia’s 32 departments, serving more than 856 municipalities, 90% of them categorized as rural. It has 200 branches, 75% located in rural municipalities. In addition to productive microloans, Bancamía offers savings accounts, debit cards, and micro life, funeral, liability, and debt insurance.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. Any gaps with respect to the IDB Invest Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) provided below.

ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY

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Contact information

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EMAIL

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PHONE

+1(202)-566-4566

ADDRESS

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