Galicia CL III (IFC-38134)

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 16, 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 DE GALICIA Y BUENOS AIRES S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Energy
  • 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)
$ 130.00 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)
$ 130.00 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 29, 2018

Disclosed by Bank Apr 14, 2016


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Project Description

The proposed project consists of a loan to Banco Galicia (the “Bank”) to be structured in two tranches: (a) a 5-year tranche to on lend to small and medium enterprises (“SMEs”); and (b) a 7-year tranche to on lend to sustainable energy finance (“SEF”) projects in Argentina.

Investment Description

Banco Galicia was founded in 1905 and is one of the largest private banks in Argentina. Banco Galicia is wholly owned by Grupo Financiero Galicia S.A. (the “Group”), one of Argentina’s main financial services conglomerates. The Group is controlled by the Escasany, Ayerza and Braun families, which hold directly and indirectly 30.6 % of the Group’s shares (corresponding to 62.8% of the total voting rights). In addition, following the re-nationalization of pension funds in 2008, the Argentine government holds a 20.3% of the Group’s shares through the ANSES (Social Security Administration), and the remaining 49.1 % of the shares is listed on the Buenos Aires Stock Exchange and in the NASDAQ.

Financial Intermediary
Financial Intermediary: A commercial 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

Banco Galicia was founded in 1905 and is one of the largest private banks in Argentina. Banco Galicia is wholly owned by Grupo Financiero Galicia S.A. (the “Group”), one of Argentina’s main financial services conglomerates. The Group is controlled by the Escasany, Ayerza and Braun families, which hold directly and indirectly 30.6 % of the Group’s shares (corresponding to 62.8% of the total voting rights). In addition, following the re-nationalization of pension funds in 2008, the Argentine government holds a 20.3% of the Group’s shares through the ANSES (Social Security Administration), and the remaining 49.1 % of the shares is listed on the Buenos Aires Stock Exchange and in the NASDAQ.


Contact Information

Project Contact: Carlos E. López
Senior Vice President – International Division – Financial Area, Banco Galicia
Office Address: Teniente General Juan Domingo Perón 430, Buenos Aires, Argentina
Telephone No.: +54 11 6329 6133

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/