FMO will be highly additional by injecting long tenor financing to a bank in a sector with limited access to international funding, including long tenor financing. The bank provides short and long tenor financing to corporates and SMEs, with up to 8 years tenor. Since the bank’s funding is mostly short term (99% <1 year), FMO’s loan would improve the bank’s funding structure and allow to increase long tenor loans, currently financed mostly with equity. Partnering with Banco Bolivariano allows FMO to increase its reach in Ecuador, since the bank has a strong presence in Guayaquil and the coastal region of the country.
Funds will be directed to SMEs
Bolivariano is a locally-owned Universal Bank with a strong regional presence in Guayaquil and the coastal region of Ecuador. The bank has a long track record (39 years of operations) and as of June 2017, it has TAs of USD 2,9 bln and ranks #6 in the sector, with a stable share of 8% TAs. The bank is focused on Corporate and SMEs segments (43.1% and 38.4% of total loans, respectively), with less relevant portfolios of loans to individuals (15.6%) and microfinance (2.9%).
No contact information provided at the time of disclosure.
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