Early Warning System

Countries

Dominican Republic

Geographic location where the impacts of the investment may be experienced.

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

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Nov 16, 2018

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Banco Santa Cruz

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance

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, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 10.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 10.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 10.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Campaign Documents

Company Overview of Banco Santa Cruz S.A.

Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 23, 2018

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank, the objective of this transaction is to increase access to financing for small and medium size enterprises ("SMEs") in the Dominican Republic by supporting the growth of Banco Santa Cruz's SME portfolio. To do this, IDB Invest is proposing a Senior Unsecured Loan of approximately US$10 million to Banco Santa Cruz, with a term of up to four (4) years (the "Project").

People Affected By This Project

People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Table 1. Environmental and Social Action Plan

No.

Task

Description

Expected Deliverable

Deadline

Improvement of E&S Policy and Procedures

Improve E&S policy and procedures, including the integration of E&S sector guides and organization, resulting in a revised E&S Policy, exclusion list and procedures manual, including flowchart and role for each division.

Copy of the improved E&S policy and procedures

Condition precedent to first disbursement

Pilot Testing and Integration of the ESMS

Test the ESMS on selected clients/projects and adjust E&S policy, procedures and tools as necessary ("pilot") and ensure full inclusion of E&S procedures and sector guidelines into Banco Santa Cruz's processes and systems.

Copy of the Pilot testing report, with final recommendations for implementation

Three months after first disbursement.

Approval of the ESMS

Confirmation of External E&S Advisor on completeness of ESMS including E&S Sector Guidelines available and adopted by Banco Santa Cruz.

Copy of the final confirmation report from an external E&S advisor

Six months after first disbursement

Final Board approval of the ESMS Implementation

Full review of functioning ESMS and implementation of E&S Sector guidelines and formal approval of ESMS by Board / Directorio and roll-out to entire portfolio.

Copy of the ESMS Board approval statement

One year after first disbursement

Capacity Strengthening & Training of the ESMS

Reinforcement training of senior management, loan officers and credit analysts on E&S requirements under local national laws, by an experienced consultant acceptable to IDB Invest or by attending the IDB Invest's Environmental and Social Risk Management training workshop for FI or IDB E&S on-line courses[1]. Finally, for those newly hired personnel, provide an E&S training during the Banks induction program.

Evidence in the form of at least one E&S training certificate for key senior management, loan officers or credit analysts, as well as evidence of E&S training for those newly hired personnel.

Depending on quality training availability / timelines, but no later than one year after first disbursement.

Grievance Mechanism

Upgrade Banco Santa Cruz external communication or grievance mechanism to review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

Upgraded grievance mechanism

Depending on IT Support availability, but no longer than six months after first disbursement.

6. For inquiries and comments to IDB Invest, contact: IDB Invest's Communications Group / E-mail:divulgacionpublica@iadb.org

For project inquiries, including environmental and social questions related to an IDB Invest investment, please contact the client or the IDB Invest using the contact information provided above. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism.

Tel: +1 (202) 623-3952

Fax: +1 (202) 312-4057

Address: 1300 New York Ave. NW Washington, DC. USA. 20577

E-mail:mecanismo@iadb.orgorMICI@iadb.org

[1]https://cursos.iadb.org/es?lang=es

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

IDB Invest (IDBI)

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

Banco Santa Cruz (Financial Intermediary)

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client Contact Name: Rafael Jiminian Castillo
Title: Executive Vice President
Phone number: (+809) 726-2214
E-mail address: rjiminian@bsc.com.do

For inquiries and comments to IDB Invest, contact: IDB Invest’s Communications Group / E-mail: divulgacionpublica@iadb.org

Tel: +1 (202) 623-3952

Fax: +1 (202) 312-4057

Address: 1300 New York Ave. NW Washington, DC. USA. 20577

E-mail: mecanismo@iadb.org or MICI@iadb.org