BIND CL (IFC-40429)

Countries
  • Argentina
Geographic location 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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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."
Borrower
BANCO INDUSTRIAL S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Small & Medium Enterprises
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 55.00 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)
$ 55.00 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.
Project Cost (USD)
$ 55.00 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 @ IFC website

Updated in EWS Aug 7, 2018

Disclosed by Bank Mar 5, 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.

The proposed project (the “Project”) consists of an up to US$55 million debt facility to Banco Industrial S.A.(the “Bank” or “BIND”) to finance small and medium enterprises (“SMEs”), to be structured in up to three consecutive commitments with a 12-month bullet repayment each: (i) one commitment for up to US$15 million (“Loan #1”) to be committed within 4 months of IFC Board Approval; (ii) another commitment for up to US$20 million (“Loan #2”) to be committed within 20 months of IFC Board Approval, only after full repayment of Loan #1; and (iii) a final commitment for up to US$20 million (“Loan #3”) to be committed within 36 months of IFC Board Approval, only after full repayment of Loan #2.

According to the bank, the key risks and impacts derive from the Bank's capacity to identify and manage the potential E&S risks associated to sub-projects asset class in line with IFC requirements. Overall, BIND's SME portfolio risks are of medium to low nature, concentrated in retail and wholesale trade sectors and typically related to occupational, health and safety. The Bank currently has no E&S policy nor procedures. As part of the Project the Bank will develop and implement an Environmental and Social Management System ('ESMS'), as well as provide staff training. The Bank will also be required to enhance its Human Resources practices in line with IFC labor standards (PS2).

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 Actor Relationship
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.

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

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 Industrial S.A. is a small bank in Argentina constituted in 1997 after the merger of two financial institutions: (i) Caja de Crédito La Industrial Cooperativa Limitada (founded in 1956); and (ii) Nuevo Banco de Azul S.A. (founded in 1928).


The Bank offers products and services to individuals (mainly retirees), SMEs and larger companies. It is ranked 22nd in terms of loans, with a market share of 0.67% and 26th in terms of deposits with a market share of 0.56%. The Bank has over 680 employees and relies on a network of 36 branches and 55 ATMs, with presence in the provinces of Buenos Aires, Córdoba, Santa Fe, Mendoza, Salta and Tucumán.


BIND is owned by Mrs. Carlota Evelina Durst de Meta and Mr. Andres Meta (Mrs. Durst de Meta's son). The Meta family has more than 30 years of experience in the Argentine financial system.


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.

For inquiries about the project: 

Company                    Banco Industrial S.A.
Point of Contact         Gaston Eckelhart
Title                            Adscribed to Board (Adscripto a la Presidencia)
Telephone Number    (5411) 5238- 0200 (ext.27211)
Email                          geckelhart@bancoindustrial.com.ar
Mailing Address         Sarmiento 530 CABA (C1041AAL)
Website                      www.bind.com.ar

For inquiries about IFC: 

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

 

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/

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