Sudameris Loan (IFC-46124)

Countries
  • Paraguay
Geographic location where the impacts of the investment may be experienced.
Specific Location
Uninformed
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Active
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
May 20, 2022
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
SUDAMERIS BANK S.A.E.C.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.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 75.00 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)
$ 75.00 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)
$ 75.00 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 20, 2024

Disclosed by Bank Apr 19, 2022

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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 investment consists of a 5-year A-loan to Sudameris Bank S.A.E.C.A (Sudameris or the Bank) for up to US$75 million, to expand the Bank’s small and medium enterprises (SMEs) lending program, of which at least 30% is expected to be on-lent to Women-Owned SMEs (WSMEs) (the Project).

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

IFC anticipates that the Project will contribute to narrow the finance gap for SMEs in Paraguay, supporting financial inclusion in the country. The SME finance gap in Paraguay is US$3.9 billion according to the SME Finance Forum, representing approximately 14% of the country's GDP. Informal micro and SME demand for finance is estimated at another US$3.6 billion. Improving access to finance and thus productivity of SMEs is crucial for the development of Paraguay's economy, as SMEs are a key driver of economic growth and job creation. Furthermore, 30% of the proceeds are expected to be used to originate loans to WSME, a key underserved sub-segment in the economy.

The Project will also increase the competitiveness of the SME financing sector by enabling the Bank to expand its operations. Through the Project, the Bank will demonstrate to other players the commercial viability and business opportunity presented by underserved SMEs proven by its growing market share.

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

The Project consists of an IFC’s own account senior A Loan of up to US$75 million to Sudameris. The proceeds of the Loan will be used by the Bank to finance eligible SMEs and WSMEs.

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.

According to the IFC, Sudameris is a Paraguayan commercial bank with more than 430 employees and 19 branches across the country. As of February 2022, the Bank ranked as the fourth largest bank in terms of loans with a market share of 9.6%.


Contact Information
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IFC

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If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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