BANCO PICHINCHA - Green Bond (IDBI-11762-05)

Countries
  • Ecuador
Where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest
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
Oct 26, 2018
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 Pichincha
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 50.00 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)
$ 50.00 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 Nov 23, 2018


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Project Description

According to the bank, this project consists in supporting the first green bond issuance by a private sector entity in Ecuador. Banco Pichincha is issuing green bonds in the local market under a US$250 million program. The bonds will have a maturity of up to five years. The proposal of IDB Invest is to subscribe up to US$50 million and potentially mobilize up to US$50 million of co-investment.

People Affected By This Project

1. Scope of Environmental and Social Review. The environmental and social review of the proposed transaction was carried out through desk research, and an extensive review and audit of the client's existing environmental and social management system. Banco Pichincha is an existing IDB Invest client with strong environmental and social management capacity and policies.2. Environmental and Social Categorization and Rationale. The proposed operation is classified as an FI-2 per IDB Invest's Sustainability Policy. Underlying loans to be supported through the bond issuance will be considered green and fall within the criteria as defined by the Green Bond Principles (GBP). The sub-loans will average between US$1,000 - US$10,000. Category A sub-projects, per IDB Invest's definition, will be excluded as well as projects in excess of 10MW, hydropower, and fossil fuel-related efficiency projects.3. Environmental and Social (E&S) Risks and Impacts. The main E&S risks of this projects are associated with the Financial Institution (FI) capacity to identify and manage the E&S risks associated with its lending activities. Banco Pichincha's capacity in this respect is considered high based on previous work with IDB Group and other DFIs (see Mitigation Measures). The Environmental Social Health and Saftety (ESHS) impacts and risks associated with loans to green investments are likely to be moderate in nature. Eligible investments will include renewable energy, energy efficiency, water efficiency, and green buildings.4. Mitigation Measures. Banco Pichincha will be required to ensure that all loans supported under the bond issuance comply with IDB Invest's Exclusion List, applicable E&S local laws, Banco Pichincha's existing Environmental and Social Management System (ESMS), and defined eligibility critiera. The eligibility criteria are defined and establish all conditions that potential sub-loans must meet in order to be considered green. These criteria are in line with the green bonds standards and GBP, and further reflect IDB Invest's Sustainability Policy requirements.5. Environmental and Social Action Plan. Not Required.6. Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the emaildivulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing tomecanismo@iadb.orgorMICI@iadb.org, or calling +1(202) 623-3952.

Investment Description
  • IDB Invest

Investment type not specified at the time of the snapshot

Private Actors
Contact Information

Client contact name: Eduardo Urgiles
Title: Treasurer
Phone number: (593 2) 2 980-980
Email address: eurgiles@pichincha.com

Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email divulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org, or calling +1(202) 623-3952.