Company name

Banco Promerica El Salvador

Project number

11861-03

FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.

E&S category
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FI-2

Country

El Salvador

Sector

Financial Institutions

Status

Proposed

Disclosed date

11/15/2021

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

Projected board date
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12/17/2021

Approval date

12/17/2021

Signed date

N/A

Sponsoring entity

N/A

Team leader

Eskildsen Alfaro, Jan Petter

Investment type

Syndicated amount

N/A

Financing amount

USD $ 20,000,000

Currency

USD

Project scope and objective

The proposed transaction is a subscription to the first public issuance program of sustainable bonds by Banco Promerica S.A. ("Promerica") in the local Salvadoran market, for up to US$100 million, of which US$20 million will be subscribed by IDB Invest during the first issue and the remainder, limited to US$80 million, will be subscribed by other impact investors in subsequent issuances. These funds will be used to finance projects with a positive social and environmental impact within the country and will focus on Small and Medium Enterprises (SMEs) with a green portfolio and a social portfolio. IDB Invest will support Promerica in launching its first thematic bond in accordance with the Social Bond Principles issued by the International Capital Markets Association (ICMA). This will be supported by a Second Party Opinion (SPO) by an independent third party that will validate the bond classification as a Thematic Bond and provide the associated market accreditation for it to attract the interest of issuers seeking to maximize the social impact of their investments. This thematic bond will be aligned with the UN Sustainable Development Goals (SDGs) and the Social Bond Principles (SBP), making it the first bond issuance of its kind on the El Salvador Stock Exchange and by IDB Invest.

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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.

PROMERICA ES 11861-03 ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)

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Contact information

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Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Laura Ávalos

POSITION

Sustainability and Correspondent Banking Assistant Manager

PHONE NUMBER

(503) 2513-5234

EMAIL

lmavalos@promerica.com.sv

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices