PATAGONIA CL II (IFC-38119)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Countries
  • Argentina
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
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
May 27, 2016
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 PATAGONIA S.A.
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)
$ 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 @ IFC website

Updated in EWS Jul 28, 2018

Disclosed by Bank Apr 22, 2016


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

According to IFC website, the project consists of a 5-year loan for up to US$50 million to be provided by IFC to Banco Patagonia S.A. to support its lending activities to export-oriented small and medium enterprises. Further, Banco Patagonia is a full service bank, which provides general banking services with significant presence in the retail and SMEs sectors. As of December 2015, Banco Patagonia is the ninth bank in Argentina in terms of assets and loans, with a market share of 3.5%, and tenth in terms of deposits. The Bank has 3,361 employees and more than 1 million active clients.

IFC's long-term financing is expected to bring high development impact by enhancing Banco Patagonia's capacity to support access to finance for SMEs. SME finance is a key priority for IFC and this project contributes to reducing the financing gap by providing scarce long-term financing to SMEs, thus helping them support capital expenditure programs and investment in capacity expansion leading to employment generation and growth.

Investment Description
  • International Finance Corporation (IFC)

Banco Patagonia’s main shareholder is Banco do Brasil S.A. (“BB”), which is the oldest and largest bank in South America in terms of total assets, and the largest in Brazil by assets, deposits and branches. BB is controlled by the Brazilian Federal government, which holds 57.7% of its shares.
Other shareholders include former founders and management of Banco Patagonia, Emilio Gonzalez Moreno and Ricardo and Jorge Stuart Milne, which currently hold 21.4% of the Bank’s capital. In addition, following the nationalization of pension funds, the Argentine government holds a 15.3% stake in Banco Patagonia through the ANSES (Social Security Administration). Moreover, the Province of Rio Negro is also a minority shareholder with a 3.2% stake.

Private Actors

Banco Patagonia’s main shareholder is Banco do Brasil S.A. (“BB”), which is the oldest and largest bank in South America in terms of total assets, and the largest in Brazil by assets, deposits and branches. BB is controlled by the Brazilian Federal government, which holds 57.7% of its shares.
Other shareholders include former founders and management of Banco Patagonia, Emilio Gonzalez Moreno and Ricardo and Jorge Stuart Milne, which currently hold 21.4% of the Bank’s capital. In addition, following the nationalization of pension funds, the Argentine government holds a 15.3% stake in Banco Patagonia through the ANSES (Social Security Administration). Moreover, the Province of Rio Negro is also a minority shareholder with a 3.2% stake.

Contact Information

Project Contact: Mariana Sciarrillo
Manager of International Businesses, Banco Patagonia
Avenida de Mayo 701, Buenos Aires, Argentina
Telephone No.: +54 11 4132 6054

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/