Promerica DR – Senior and Subordinated Loan for Climate and SMEs Financing

This transaction consists of an unsecured A/B senior loan and a subordinated loan of up to approximately US$80 million (or Dominican Pesos, “DOP”, equivalent) to be granted to Banco Múltiple Promerica República Dominicana, S.A. (“Promerica DR” or the “Bank”). These loans are collectively referred to as the “Project” or the “Loan.” The A/B senior loan has a term of up to seven years from disbursement, including a two-year grace period for principal repayment, while the subordinated loan has a term of up to 10 years with a bullet repayment at maturity. IDB Invest will fund up to US$35 million of the Loan, which consists of four parts: (i) up to US$10 million (or its equivalent in DOP) in senior committed funds; (ii) up to US$10 million (or its equivalent in DOP) in senior uncommitted funds; (iii) up to US$5 million in committed subordinated funds; and (iv) up to US$10 million to be provided through blended finance. The remaining portion will be covered by one or more external participants (the “B Loan”).

The primary objective of the Project is to enhance access to financing for Small and Medium Enterprises (SMEs), particularly those that are women-owned or led (“Women SMEs”), as well as for green projects within the Dominican Republic. To achieve this objective, the transaction aims to strengthen Promerica DR’s long-term financing capabilities, diversify its funding sources, and bolster its capital base, thereby supporting its growth strategy for the loan portfolio, which includes the targeted segments. 

Likewise, the Loan may encompass a Technical Advisory Services (“TA”) component provided by IDB Invest, aimed at assisting the Bank in enhancing its value proposition and management practices to improve its SME and green portfolio.