The project consists of a 7 year loan up to US$50 million to Scotiabank El Salvador S.A. to fund the growth of lending to small and medium enterprises (“SMEs”) and low and middle income home owners in El Salvador.
Contribution to Economic Growth. The Project is expected to contribute to the WBG goals by supporting economic growth in El Salvador by providing long term access to finance to SMEs and mortgages through a leading bank in a market faced with poverty and a large housing deficit. Increased access to finance to SMEs is also believed to assist in creating opportunities for jobs, which is considered a critical link in poverty reduction and economic growth; two areas identified in El Salvador as challenges to be tackled. \r\rDemonstration Effect: By providing long term funding to Scotia El Salvador, which is new in the market, IFC hopes to create a competitive environment in the banking sector and encourage other banks in El Salvador to seek and provide financing with longer terms. IFC's loan hopes to increase availability of longer tenor lending instruments to provide low and middle income mortgages and financing for SMEs.
The project sponsor is Scotiabank El Salvador, which is the leader in mortgage segment with a market share of 33.3% in El Salvador. Its parent company is The Bank of Nova Scotia, a publicly listed, international universal bank in Canada which globally serves over 23 million customers. The parent is active in 11 countries across Latin America through its subsidiary operations.
Scotiabank El Salvador is a subsidiary of Inversiones Financieras Scotiabank El Salvador, which is 99.8 percent owned by the Bank of Nova Scotia and the remainder owned by minority shareholders. Inversiones Financieras controls 88.7 percent of the shares of Scotiabank El Salvador, while BNS directly owns the remaining 10.8 percent.
Company: Scotiabank El Salvador S.A.
Point of Contact: Ana Trabanino / Title Head of Treasury
Telephone Number (503) 2234-4516
Mailing Address: Centro Financiero 25 Av. Norte y 23 Calle Poniente No. 1230 San Salvador, El Salvador, C.A.
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/