According to the Bank’s website, the proposed project is an up to US$190 million financing package for Banco de America Central, S.A. (BAC ES or the Bank), consisting of: (i) an up to US$30 million senior unsecured A loan for IFC's own account (IFC A Loan), part of which benefits from US$15 million unfunded mobilization through the Managed Co-Lending Portfolio Program (FIG III program), in which IFC will transfer the credit risk to insurance companies, which results in a net IFC own account exposure of not more than US$30 million; (ii) up to US$120 million mobilization package through a B Loan facility; and (iii) an unfunded trade finance facility under IFC’s Global Trade Finance Program (GTFP) of up to US$40 million with BAC El Salvador. (the Project).

The loan proceeds will be used to fund the growth of the Bank's climate-smart assets (including green mortgages and blue assets) and small and medium-sized enterprises (SMEs) including women SMEs (WSMEs).  The trade line will support short-term trade finance activities. The trade finance activities supported by the Project will be required to meet the requirements of the IFC's Exclusion List and other exclusions deemed necessary. The Project will not support any activities with significant E&S concerns such as: (a) involuntary resettlement; (b) risk of adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (d) significant occupational health and safety risks. It will also not support any activities related to upstream oil & gas production and activities related to coal such as coal mining, coal transportation, coal-fired power plants, or infrastructure services exclusively dedicated to support any of these activities. IFC will review the details of the underlying trade transactions to confirm that they do not include activities in the IFC Exclusion List and any other exclusions.  

Potential E&S risks and impacts associated with the Project are expected to be medium, therefore it has been categorized as FI-2 according to IFC's Sustainability Policy. The Project will not support activities on IFC Exclusion List, coal related sub-projects, hydro energy projects, solar, offshore wind, and Higher Risk transactions that may include (i) involuntary resettlement; (ii) risk of adverse impacts on indigenous peoples; (iii) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; (iv) risk of significant retrenchment; and/or (v) significant occupational health and safety risks. The main environmental and social (E&S) risks and impacts related to the Project derive from the Bank’s capacity to screen out Higher Risk Transactions as well as to properly identify, assess, and manage the E&S risks of a supported portfolio in line with the IFC requirements. The Bank’s E&S risks associated with the supported portfolio are mainly related to occupational, health, and safety, waste management, biodiversity, community impacts, and labor issues.

The proposed project is an up to US$190 million financing package for Banco de America Central, S.A. (BAC ES or the Bank), consisting of: (i) an up to US$30 million senior unsecured A loan for IFC's own account (IFC A Loan), part of which benefits from US$15 million unfunded mobilization through the Managed Co-Lending Portfolio Program (FIG III program), in which IFC will transfer the credit risk to insurance companies, which results in a net IFC own account exposure of not more than US$30 million; (ii) up to US$120 million mobilization package through a B Loan facility; and (iii) an unfunded trade finance facility under IFC’s Global Trade Finance Program (GTFP) of up to US$40 million with BAC El Salvador.

BAC ES is a new client; and part of BAC Credomatic Group, Central America's largest financial group, which is property of Mr. Luis Carlos Sarmiento Angulo also the owner of Grupo Aval, the largest financial group in Colombia.  BAC Credomatic Group is the largest banking group in Central America based in terms of consolidated assets, having a dominant position in consumer and credit card banking, with also a robust presence in corporate, SME, and mortgage loans. BAC Group has operations in six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) with significant market shares and systemic importance in each of these markets.            

Banco de America Central, S.A.
Carolina Calderon
Gerente de Tesoreria
(503) 2206-4871 ext 4871
carolina.calderon@baccredomatic.sv
CENTRO ROOSEVELT, 55° AV. SUR ENTRE ALAMEDA ROSSVELT Y, Av. Olímpica EDIFICIO D, EL SALVADOR, El Salvador
www.baccredomatic.sv

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