Banco Santa Cruz SME Partnership (IDBI-11858-02)

Countries
  • Dominican Republic
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
Nov 16, 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 Santa Cruz
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 Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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, 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, 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

Table 1. Environmental and Social Action Plan

No.

Task

Description

Expected Deliverable

Deadline

1

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

2

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.

3

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

4

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

5

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.

6

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
  • IDB Invest
Private Actors
Contact Information

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

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.org or MICI@iadb.org