Guayaquil Social Bond (IDBI-11749-07)

Countries
  • Ecuador
Where the impacts of the investment may be experienced.
Specific Location
Guayaquil
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 1, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Banco Guayaquil, S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Education and Health
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IDBI website

Updated in EWS May 6, 2020

Disclosed by Bank May 1, 2020


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Project Description

The Project consists of supporting Banco Guayaquil ("BG"), as it issues its first social bond for Ecuador's private sector. The total amount of the bond is up to US$30 million, and IDB Invest will take part as an investor, with a subscription of 100%.

The proceeds from this medium-term social bond will be used to finance the Micro, Small, and Medium-sized enterprises that are part of the microcredit portfolio under the "Banco del Barrio" (neighborhood bank) program and in the bank's Small and Medium-sized Enterprises portfolio. Banco del Barrio is the nonbank correspondent financing system with the largest geographical reach in the country.

The Project will mainly be focused on MSMEs located in the Ecuadorian cities most impacted by Covid-19. Technical assistance will also be provided for designing the conceptual framework of the bond issue, and a second party opinion will be included, pursuant to the Sustainable Development Goals.

Investment Description
  • IDB Invest (IDBI)
Private Actors
Contact Information

Client Name: Luis Fernando Coronel Ceballos
Title: Vice President for Treasury
Phone number: +593-3730100 ext. 25020
E-mail: lcoronel@bancoguayaquil.com

ACCOUNTABILITY MECHANISM OF IADB

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).