Company name
Banco Múltiple BHD León S.A.
Project number
11807-04
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
FI-3
Country
Dominican Republic
Sector
Financial Institutions
Status
Completed
Disclosed date
04/21/2017
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
06/20/2017
Approval date
06/21/2017
Signed date
08/05/2019
Sponsoring entity
N/A
Investment Operations Department Contact
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 50,000,000
Currency
DOP
Project scope and objective
The proposed Loan to Banco Múltiple BHD León, S.A. (“BHDL”) will be for up to US$50 million or its equivalent in Dominican Pesos (“DOP”) to support the growth of small and medium sized businesses (“SMEs”) in the Dominican Republic (“DR”). In particular, the Project seeks to promote access to finance for women-owned SMEs in the DR through BHDL’s Mujer Mujer Program, which provides a comprehensive approach to serving the female market, including specialized loan and non financial services for women-owned SMEs.
BHDL has embraced the market opportunity to support the growth of women-led businesses and taken a leadership role in developing a value proposition of products and services to better provide access to finance and growth opportunities for women in the DR. BHDL’s Mujer Mujer Program, launched in 2014, provides a wide range of adapted products, including tailored working capital and investment loans. In recognition of the fact that women-owned businesses seek additional non-financial products and benefit from access to mentoring and business advisory services, BHDL’s comprehensive offering—developed in part through the Global Alliance for Banking on Women (“GBA”)—includes health and business insurance, credit cards with embedded benefits deemed most attractive to women clients, and networking events, to effectively support the overall growth and success of its SME clients.
The IIC Loan will be a senior unsecured financing of up to US$50 million comprised or its equivalent in DOP. The proposed IIC Financing to BHDL would specifically target women-owned SMEs and seek to a target client number representing a larger share of the BHDL SME portfolio. The tenor of the IIC Loan is expected to be for up to 5 years. The IIC Loan will be complemented by Advisory Services, which will support BHDL’s efforts to become a true market leader and emblematic role model for gender targeted lending, through the Swiss-based EDGE Certification. If obtained, the EDGE Certification would recognize BHDL’s efforts to implement ambitious gender equality measures as part of its corporate culture and adopt practices that mirror its equitable product offering for women clients.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesFor inquiries, comments and information requests about the project
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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. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY
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