Banco G&T Continental - SME Partnership (IDBI-12381-01)

  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
  • Guatemala
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
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 20, 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.
Banco G&T Continental, S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 75.00 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)
$ 75.00 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.
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 IADB website, the operation consists of a subordinated financing package of up to US$75,000,000, which will be used to strengthen the equity position of Banco G&T Continental in Guatemala. The financing will be channeled to support the Bank's Small and Medium Enterprise (SME) portfolio growth strategy, with an emphasis on women-led businesses. Specifically, by combining financing and technical assistance, the aim is to replicate and scale-up the program "G&T Mujer" that was developed by the Bank's subsidiary in El Salvador, and that was awarded in 2016 by the Global Banking Alliance for Women (GBA). It is expected that this project will increase access to finance for SMEs, particularly those led by women.

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.

1. Description of the Project. The objective of this transaction is to increase access to finance for SMEs by supporting the growth of the loan portfolio of Banco G&T Continental in Guatemala. For this purpose, IDB Invest proposes a financing package of up to US$75 million. With the IDB Invest's proceeds, G&T Continental will expand financing for SMEs. The financing will be supplemented by technical assistance to incorporate a gender perspective in how services are targeted and provided to its SME clients.2. Environmental and Social Classification and Rationale. Most of the supported subprojects have a low risk potential while a smaller number have a medium risk potential. The maximum size of the subloans is US$650,000. As a result, in accordance with IIC's Environmental and Social Sustainability Policy, the operation is classified as FI-2. Based on the nature of this operation, specifically SME financing, it is likely to entail low- and medium-intensity indirect environmental, social or health, and safety and occupational impacts and risks.3. Environmental and Social Risks and Impacts. IDB Group's proceeds will be used to support the Bank's SME portfolio. In the SME portfolio, Banco G&T Continental has a greater exposure to the Trade sector at 40%, followed by the Services sector at 17%, the Real Estate sector at 9%, Manufacturing at 7%, Agriculture at 6%, with the remaining sectors having exposures of less than 5% (Construction, Financial Services, Consumer Finance, etc.).Thus, the key risks and impacts are based on the ability of the Banco G&T Continental to manage potential environmental and social risks associated with loans to these sectors. For example, such risks may include management of solid waste and wastewater, labor risks, and occupational health and safety risks.Banco G&T Continental already has an Environmental and Social Management System (ESMS), which includes, inter alia, a Social and Environmental Risk Management Policy dated November 29, 2016 (version 3). As stipulated in this policy, the Bank applies the IFC Exclusion List and Performance Standards, as well as national environmental and social legislation. The system includes adequate management procedures and diverse plans, it also establishes differentiated levels of analysis according to the rating, amount and the term of the loan. In the case of loans to SMEs, the client applies the list of exclusions of the IFC, assigns the risk category and a requirement to apply national environmental and social legislation. The ESMS is implemented by a qualified and trained team to manage the environmental and social risk of the operation. Banco G&T Continental also has a complaints mechanism with its corresponding internal and external complaint management system, as well as emergency plans for earthquakes and fires, and an Occupational Health and Safety Plan.Grupo Financiero G&T Continental applies a Code of Ethics applicable to all who work within the Group, in all countries where it operates, making available various channels to ensure effective enforcement of the code. As for fair and equitable labor conditions -- free of any discrimination based on age, gender, ethnicity, cultural heritage and religion -- Banco G&T Continental applies the above-mentioned Code of Ethics; since the code is reciprocal, it is binding on all employees as well as management and expressly prohibits any discrimination based on race, color, religion, gender, nationality, age, disability or any other category.Banco G&T Continental is committed to gender equality. In particular, the Bank maintains a continuous training program for the organization's women leaders called the Women Business Network, which has been in force for more than three years. The Bank is also seeking to replicate the group's successful model implemented in Banco G&T Continental (El Salvador) of a credit line for women-led SMEs. IDB Invest plans to support Banco G&T Continental both in leadership training and the line of credit for women.4. Mitigation Measures/Environmental and Social Action Plan. Banco G&T Continental will continue to apply the contractual clause to all subloans, according to which each subloan must comply with current environmental and social legislation. The Bank will also apply IDB Invest's exclusion list. No gaps with the IDB Invest Environmental and Social Policy have been identified and thus no Environmental and Social Action Plan is required. Given that IDB Invest's loan is focused on supporting the SME business, exposure of IDB Invest's proceeds to each client is limited to the level defined by national regulations for SMEs (JM-93-2005) which, at this point, is US$650,000. In addition, for the subloans granted using the IDB Invest proceeds, the exclusion list of IDB Invest will be applied, Category A investments are excluded, as well as investments in the hydroelectric power generation and palm oil sectors.5. Contact Information. For questions on the projects, including environmental and social issues related to an IDB Invest transaction, please contact the client (see Investment Summary file), or IDB Invest by As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism via e-mail, or telephone at +1(202) 623-3952.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Banco G&T Continental, S.A. operates as a financial institution that provides banking and other financial services. It offers deposit banking, granting credits, certificates of deposit, credit cards, microcredit finance, and savings accounts services.

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: Monica del Cid
Position: Manager of Planning and Financial Control
Banco G&T Continental
Telephone: +(502) 2338-6888, Ext. 15190


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 You can learn more about the MICI and how to file a complaint at,1752.html (in English) or,1752.html (Spanish).

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