FEDECREDITO SC DE RL DE CV (FMO-50193)

Countries
  • El Salvador
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
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
Dec 8, 2016
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
Fedecredito
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)
$ 24.00 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 @ FMO website

Updated in EWS Jun 26, 2018


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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.

FROM THE FMO:

WHO IS OUR CLIENT

Fedecredito is a federation of 55 member cooperatives, which provides technical assistance and funding to its members. The 55 member cooperatives together own 100 percent of Fedecredito. The cooperatives in turn are owned by their 934k members/ shareholders.

FUNDING OBJECTIVE

FMOs loan will be on-lent by Fedecredito to its members.

WHY WE FUND THIS PROJECT

We have committed to reduce inequality in El Salvador. Fedecredito's UBOs are about 1 million low-to-mid income Salvadorans and by providing debt we support further increase of Fedecredito's equity value which is ultimately owned by this 1/6 of the population in El Salvador. We support financial inclusion in El Salvador. By supporting Fedecredito who leads and manages the growth of the network Fedecredito (Sistema Fedecredito) which has 625+ service points throughout El Salvador being most outreaching and largest banking network in the country. There is no place in El Salvador where within a 20 kilometer range you are not able to find a service point of Sistema Fedecredito. We aim to mobilize/catalyze global partnerships. We have brought new investors to Fedecredito: DEG, Proparco, Ecobusiness Fund, Triodos and Actiam. We aim to make Fedecredito Green by supporting Fedecredito in boosting Sistema Fedecredito's agricultural portfolio aligned with the biodiversity goals of EcoBusiness Fund.

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

This project is in the form of a USD 24 million loan from the FMO.


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.

FMO
The Netherlands
+31 70 314 96 96
info@fmo.nl

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism

How it works

How it works