Banco Industrial A&B (IFC-50120)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Guatemala
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
B
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
Oct 18, 2024
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 INDUSTRIAL SA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Construction
  • Finance
  • Industry and Trade
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)
$ 190.00 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)
$ 190.00 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)
$ 350.00 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 Sep 24, 2024

Disclosed by Bank Sep 18, 2024

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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 IFC, the proposed investment consists of an up to US$350 million financing package to Banco Industrial S.A. in Guatemala, composed of: (i) an up to US$190 million senior unsecured A loan for IFC’s own account (IFC A Loan), part of which benefits from US$90.0 million unfunded mobilization through the Managed Co-Lending Portfolio Program (MCPP) 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 $100 million; and (ii) a mobilized tranche of up to US$160.0 million from B and/or Parallel Lenders.
The loan proceeds will be used to fund the growth of the Bank’s climate-related assets, SMEs portfolio and sustainable housing. The proposed senior unsecured IFC A Loan will have a maturity of up to 4-years, with a 1-year grace period.

The project will contribute to Banco Industrial's SME portfolio, WSME, and corporate climate-related sub-projects. Eligible subprojects will target housing mortgages, green buildings, and climate-smart agriculture sub-projects.

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

As stated by the IFC, headquartered in Guatemala City, Banco Industrial started operations in 1968, and is currently the leading financial institution in the country, offering a wide range of banking products and services to its customers. As of June 2024, Banco Industrial had total assets of US$20.2 billion and total equity of US$1.6 billion, which places it as the largest bank in Guatemala (28.7% market share in terms of assets) and one of the largest in Central America. The Bank's ultimate controlling entity is Bicapital Corporation (privately owned, with more than 2,670 shareholders, none of them individually owns more than 5% of shares), incorporated in the Republic of Panama.

As of June 2024, Industrial offers its products and services through a network of 766 branches, 5,122 banking agents, and 1,453 ATMs throughout the Guatemalan Republic. BI also consolidates Banco Industrial El Salvador (3.3% consolidated assets). The Bank provides a wide variety of banking services, although its loan books is still skewed toward corporate loans.


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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Phone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - Banco Industrial SA:

Jose Javier Jo Lam
Phone: +502 2331-6234
Email: jlam@bi.com.gt
Address: Via 5, 5-34 zona 4, Centro Financiero, Torre 3 Nivel 8, Guatemala, 01004
Website: www.bi.com.gt 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

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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How it works