BHDL III (IFC-40922)

Countries
  • Dominican Republic
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."
Voting Date
Apr 16, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
BANCO MULTIPLE BHD LEON SA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 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)
$ 50.00 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)
$ 50.00 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 Jun 27, 2018

Disclosed by Bank Mar 16, 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.

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
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

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

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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).

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 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.

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.         

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Centro Financiero BHD León, S.A. Parent Company -

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.

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/

How it works

How it works