DCM Gaucho GB (IFC-41090)

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
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
Mar 20, 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 DE GALICIA Y BUENOS AIRES S.A.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • Climate
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, etc.
Investment Amount (USD)
$ 100.00 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)
$ 100.00 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 Aug 8, 2018

Disclosed by Bank Mar 22, 2018


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Project Description

The bank affirms that the proposed project (the “Project”) entails an IFC investment of up to US$100 million in a 7-year green bond to be issued by Banco de Galicia y Buenos Aires S.A. (“Galicia” or the "Bank"). The green bond proceeds will be used to finance sustainable energy finance (“SEF”) sub-projects in Argentina (the “Country”).

Investment Description
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 Actor Relationship

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

The Bank is wholly owned by Grupo Financiero Galicia S.A. (“Grupo Galicia”), one of Argentina’s main financial services conglomerates. Grupo Galicia is controlled by the Escasany, Ayerza and Braun families, who collectively hold 27.9% of Grupo Galicia’s economic capital and 59.7% of the voting rights, both directly and through EBA Holding S.A. Following the re-nationalization of pension funds in 2008, the Argentine public pension fund administrator (ANSES) holds a 18.5% stake in Grupo Galicia (with 10.4% of the voting rights). The remaining 53.6% is listed on the Buenos Aires Stock Exchange and on the NASDAQ.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Grupo Financiero Galicia S.A. Parent Company -
Central Puerto Parent Company Energy owns La Castellana Wind Farm (99MW) Client Energy
Corporacion America SA Parent Company Transport owns Aeropuertos Argentina 2000 SA Client Transport
Corporacion America SA Parent Company Mining owns Cia General de Combustibles SA Client Mining
General Electric Co Parent Company Energy owns Tocumen Gas-Fired Power Client Energy
Grupo Financiero Galicia Investor Finance invests in Aeropuertos Argentina 2000 SA Client Transport
Grupo Financiero Galicia Investor Finance invests in Arcor SAIC Parent Company Agriculture and Forestry
Grupo Financiero Galicia Investor Finance invests in Central Puerto Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in Cia General de Combustibles SA Client Mining
Grupo Financiero Galicia Investor Finance invests in Corporacion America SA Parent Company Mining
Grupo Financiero Galicia Investor Finance invests in Corrientes Biomass Project Client Energy
Grupo Financiero Galicia Investor Finance invests in Cresud SA Comercial Inmobiliaria Financiera y Agropecuaria Parent Company Agriculture and Forestry
Grupo Financiero Galicia Investor Finance invests in CT Barragan SA Client Energy
Grupo Financiero Galicia Investor Finance invests in General Electric Co Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in Grimoldi SA Parent Company Industry and Trade
Grupo Financiero Galicia Investor Finance invests in Grupo Insud Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in Industrias Metalurgicas Pescarmona SAIC y F Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in Inversiones Y Representaciones Sa Parent Company Industry and Trade
Grupo Financiero Galicia Investor Finance invests in La Castellana Wind Farm (99MW) Client Energy
Grupo Financiero Galicia Investor Finance invests in Ledesma SA Agricola Industrial Parent Company Agriculture and Forestry
Grupo Financiero Galicia Investor Finance invests in Longvie SA Parent Company Industry and Trade
Grupo Financiero Galicia Investor Finance invests in Mercedes Benz Compania Financiera Argentina SA Parent Company Transport
Grupo Financiero Galicia Investor Finance invests in Pampa Energia SA Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in Pan American Energy Parent Company Mining
Grupo Financiero Galicia Investor Finance invests in Pan American Energy Additional Facility 2020 (1) Client Mining
Grupo Financiero Galicia Investor Finance invests in Pan American Energy Additional Facility 2020 (3) Client Mining
Grupo Financiero Galicia Investor Finance invests in Pan American Energy LLC Parent Company Mining
Grupo Financiero Galicia Investor Finance invests in Petrolera Entre Lomas SA Parent Company Mining
Grupo Financiero Galicia Investor Finance invests in Petroquimica Comodoro Rivadavia SA Parent Company Construction
Grupo Financiero Galicia Investor Finance invests in Quickfood SA Parent Company Agriculture and Forestry
Grupo Financiero Galicia Investor Finance invests in SADESA Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in Tocumen Gas-Fired Power Client Energy
Grupo Financiero Galicia Investor Finance invests in Toyota Compania Financiera de Argentina SA Parent Company Transport
Grupo Financiero Galicia Investor Finance invests in Vientos La Genoveva Ii Client Energy
Grupo Financiero Galicia Investor Finance invests in Vista Oil & Gas Argentina Sa Parent Company Mining
Grupo Financiero Galicia Investor Finance invests in YPF Energia Electrica Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in YPF Energia Electrica Bond Facility Client Energy
Grupo Financiero Galicia Investor Finance invests in YPF Energia Electrica SA Parent Company Energy
Grupo Financiero Galicia Investor Finance invests in YPF SA Parent Company Energy
Grupo Insud Parent Company Energy owns Corrientes Biomass Project Client Energy
Pan American Energy Parent Company Mining owns Pan American Energy Additional Facility 2020 (1) Client Mining
Pan American Energy Parent Company Mining owns Pan American Energy Additional Facility 2020 (3) Client Mining
SADESA Parent Company Energy owns Vientos La Genoveva Ii Client Energy
YPF Energia Electrica Parent Company Energy owns YPF Energia Electrica Bond Facility Client Energy
YPF SA Parent Company Energy owns CT Barragan SA Client Energy

Contact Information

For more information about this project, contact: 

Company                       Banco de Galicia y Buenos Aires S.A.
Point of Contact            Carlos Lopez
Title                               Senior Vice President Financial Institutions
Telephone Number       +54 11 63296133
Email                            carlos.e.lopez@bancogalicia.com.ar
Mailing Address           Tte. Gral. Juan D. Perón 430, Buenos Aires, Argentina
Website                         http://www.bancogalicia.com

 

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/