BHDL III (IFC-40922)

Countries
  • Dominican Republic
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
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
Apr 16, 2018
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 MULTIPLE BHD LEON SA
The holder of the loan, grant, or other investment.
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.
Loan 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 Jun 27, 2018

Disclosed by Bank Mar 16, 2018


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Project Description

According to the Interntional Finance Corporation, the proposed project will provide Banco Múltiple BHD León, S.A., an up to 5-year senior loan and an up to 10-year subordinated debt for the growth of the Bank’s small and medium enterprise (SME) portfolio for an amount of up to US$50 million. Although the bank does business in high-risk sectors such as agriculture, it has more exposure to other sectors such as services, commerce, industry/manufacturing, hotels and restaurants, transportion, and electricity distribution.

The International Finance Corporation expects that the project will increase access to financial resources such as loans for small and medium businesses. 

Early Warning System Project Analysis

The bank has rated this project as FI-2, which corresponds to medium risk or a B rating. 

Investment Description
  • International Finance Corporation (IFC)

The proposed IFC total investment consists of up to US$50 million comprised of a senior loan (a loan that must be repayed before other debts) and a subordinated debt (which can only be paid after the claims of secured creditors have been met).

Private Actors

The direct financial intermediary is the Banco Múltiple BHD León, S.A. This bank is a subsidiary of Centro Financiero BHD Leon (“CFBHDL”), a diversified financial services company whose activities include commercial banking, consumer and micro finance, pension funds, insurance, brokerage and mutual and trust funds in the Dominican Republic. CFBHDL is Grupo BHD (45.1 percent), Popular International Bank of Puerto Rico (15.8 percent), Grupo Leon (26.5 percent) and IFC (3.4 percent). The remaining 9.2 percent is owned by local shareholders through two vehicles: Centro Partner Group (5.0 percent) and Twin Investment Partners (4.2 percent).

 BHDL is headquartered in Santo Domingo and has 141 branches across the Dominican Republic.         

Contact Information

Contact:

Banco BHD Leon, S.A. 
Mr. Fidelio Despradel 
Senior Vice President 
+1-809-243-3232 
fidelio_despradel@bhdleon.com.do 
Santo Domingo, Dominican Republic 
www.bhdleon.com.do 

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/