According to the bank, the proposed investment in Banco Pichincha (“Pichincha” or “the Bank”), an existing IFC client and Ecuador’s largest bank, consists of: (i) an investment of approximately US$50 million in a green bond for IFC’s own account, as part of the Bank’s US$250 million green bonds program, for the financing of the Bank’s climate smart portfolio, and (ii) an investment of up to US$20 million in a subordinated loan for IFC’s own account, plus a US$30 million mobilization, for the financing of the Bank’s SME portfolio.The Project aims to achieve the following: (i) consolidate a commercial relationship with Pichincha, a strategic client with which IFC can further collaborate through both investment and advisory services, (ii) support the development of local capital markets and climate smart projects by subscribing resources, (iii) enhance the level of credit and financial services offered to underserved SMEs, and (iv) strengthen the Bank’s capital by providing sub-debt which qualifies as Tier II capital under local regulation.
The Project is expected to have a significant Stakeholders impact by aiming to increase access to finance to SMEs in Ecuador, as almost 31% of SMEs are fully or partially credit constrained. The Country's SME finance gap is estimated at US$15.6 billion, which is 16% of GDP. The Project also aims to increase and foster the development of climate smart projects. Ecuador ranks 7th in CO2 emissions in LAC and has committed through the Intended Nationally Determined Contributions to reduce GHG emissions by 25%.
Additionally, the Project is expected to have a significant contribution to market creation through Integration, as the Project is anticipated to be the first green bond to be issued by a bank in Ecuador and will therefore have a demonstration effect for climate smart and sustainability-focused projects through banking institutions, further contributing to greater deepening of financial and capital markets in Ecuador.
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 Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|Banco Pichincha||Investor||Finance||invests in||Aleatica SA||Client||Transport|
|Banco Pichincha||Investor||Finance||invests in||CVC Advisers Ltd||Parent Company||Mining|
|Banco Pichincha||Investor||Finance||invests in||Dinatela Xxi Sl||Parent Company||Industry and Trade|
|Banco Pichincha||Investor||Finance||invests in||Dulmatesa SL||Parent Company||Agriculture and Forestry|
|Banco Pichincha||Investor||Finance||invests in||Ercros SA||Parent Company||Industry and Trade|
|Banco Pichincha||Investor||Finance||invests in||Eurotransac SL||Parent Company||Transport|
|Banco Pichincha||Investor||Finance||invests in||Grupo Logistico Sese SL||Parent Company||Transport|
|Banco Pichincha||Investor||Finance||invests in||Humanitas Centros De||Parent Company||Construction|
|Banco Pichincha||Investor||Finance||invests in||Industry Super Holdings Pty||Parent Company||Transport|
|Banco Pichincha||Investor||Finance||invests in||Investindustrial SA||Parent Company||Agriculture and Forestry|
|Banco Pichincha||Investor||Finance||invests in||MaxamCorp Holding SL||Parent Company||Industry and Trade|
|Banco Pichincha||Investor||Finance||invests in||Mll Best Hotels Mgmt Sl||Parent Company||Construction|
|Banco Pichincha||Investor||Finance||invests in||Montes De Maria 4g Highway||Client||Transport|
|Banco Pichincha||Investor||Finance||invests in||Natra SA||Client||Agriculture and Forestry|
|Banco Pichincha||Investor||Finance||invests in||Nuestro Mundo Empresarial Sl||Parent Company||Construction|
|Banco Pichincha||Investor||Finance||invests in||Ortiz Construcciones y||Parent Company||Construction|
|Banco Pichincha||Investor||Finance||invests in||Rioja Acquisition Sarl||Client||Mining|
|Banco Pichincha||Investor||Finance||invests in||Sacyr SA||Parent Company||Transport|
|Banco Pichincha||Investor||Finance||invests in||Soltec Energias Renovables Sl||Parent Company||Energy|
|Banco Pichincha||Investor||Finance||invests in||Uquifa||Client||Education and Health|
|Banco Pichincha||Investor||Finance||invests in||Vivimed Labs Ltd||Parent Company||Education and Health|
|Banco Pichincha||Investor||Finance||invests in||Vivimed Labs Spain SL||Client||Education and Health|
|Banco Pichincha||Investor||Finance||invests in||Volcan Cia Minera SAA||Parent Company||Mining|
|CVC Advisers Ltd||Parent Company||Mining||owns||Rioja Acquisition Sarl||Client||Mining|
|Industry Super Holdings Pty||Parent Company||Transport||owns||Aleatica SA||Client||Transport|
|Investindustrial SA||Parent Company||Agriculture and Forestry||owns||Natra SA||Client||Agriculture and Forestry|
|Sacyr SA||Parent Company||Transport||owns||Montes De Maria 4g Highway||Client||Transport|
|Vivimed Labs Ltd||Parent Company||Education and Health||owns||Uquifa||Client||Education and Health|
|Vivimed Labs Ltd||Parent Company||Education and Health||owns||Vivimed Labs Spain SL||Client||Education and Health|
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/