SUDAMERIS BANK S.A.E.C.A. (FMO-53900)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Paraguay
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
A
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
Sep 19, 2018
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
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Ring Fence
  • No Restrictions
A financial intermediary is a commercial bank or financial institution that receives funds from a development bank, sometimes for a specific lending purpose. A "ring fence" is another name for this specific purpose. These funds are then used for lending by the financial intermediary to client companies or individuals.
Investment Amount (USD)
Not Disclosed
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.
Other Related Projects
Primary Source

Original disclosure @ FMO website

Updated in EWS Dec 20, 2023

Disclosed by Bank May 20, 2021

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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 bank is an important sparring partner for FMO in the Environmental and Social roundtable for banks in Paraguay. Here, important Environmental and Social aspects related to Paraguay are being discussed, for which Sudameris has developed the Environmental and Social guide for the cattle sector. We deem it important to remain involved in the Financial Sector in Paraguay in order to keep on improving Environmental and Social practices in Paraguay.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The FMO assigned to the project risk category A.

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

Through this 7.5% stake we want to continue our relationship with the bank in order to further develop Environmental and Social practices in Paraguay and support Sudameris in the organic growth of the loan portfolio.

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 Actor Relationship
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.

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

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.

Sudameris is a mid-sized bank (#5 in Total Assets, and market share of ~7%) active in Paraguay, serving the corporate, Small and Medium Sized Enterprises, and retail segments.  Sudameris, a category A risk client, is one of the first banks in Paraguay to have implemented an environmental and social management system. The bank also played a key role in the development of the sustainability sector initiative, 'Mesa de Finanzas Sostenibles', or Sustainable Finance Round Table. Through these action Sudameris has set an example for better environmental and social practices in the financial sector and towards clients and society more broadly.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
MOTA-ENGIL Parent Company Transport owns Ruta 2 Client Transport
MOTA-ENGIL Parent Company Transport owns Ruta 7 and Section 0 Bridge Facility PPP Client Transport
Ocho A Parent Company Transport owns Ruta 2 Client Transport
Ocho A Parent Company Transport owns Ruta 7 and Section 0 Bridge Facility PPP Client Transport
Sacyr Concesiones Parent Company Transport owns Ruta 2 Client Transport
Sacyr Concesiones Parent Company Transport owns Ruta 7 and Section 0 Bridge Facility PPP Client Transport
Sudameris Bank Investor Finance invests in MOTA-ENGIL Parent Company Transport
Sudameris Bank Investor Finance invests in Ocho A Parent Company Transport
Sudameris Bank Investor Finance invests in Ruta 2 Client Transport
Sudameris Bank Investor Finance invests in Ruta 7 and Section 0 Bridge Facility PPP Client Transport
Sudameris Bank Investor Finance invests in Sacyr Concesiones Parent Company Transport

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.

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

How it works

How it works