BANCO PICHINCHA - Green Bond (IDBI-11762-05)

Countries
  • Ecuador
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • IDB Invest (IDBI)
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
FI
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 26, 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
Banco Pichincha
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 Amount (USD)
$ 50.00 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)
$ 50.00 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.
Campaign Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS Nov 23, 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.

According to the bank, this project consists in supporting the first green bond issuance by a private sector entity in Ecuador. Banco Pichincha is issuing green bonds in the local market under a US$250 million program. The bonds will have a maturity of up to five years. The proposal of IDB Invest is to subscribe up to US$50 million and potentially mobilize up to US$50 million of co-investment.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

1. Scope of Environmental and Social Review. The environmental and social review of the proposed transaction was carried out through desk research, and an extensive review and audit of the client's existing environmental and social management system. Banco Pichincha is an existing IDB Invest client with strong environmental and social management capacity and policies.2. Environmental and Social Categorization and Rationale. The proposed operation is classified as an FI-2 per IDB Invest's Sustainability Policy. Underlying loans to be supported through the bond issuance will be considered green and fall within the criteria as defined by the Green Bond Principles (GBP). The sub-loans will average between US$1,000 - US$10,000. Category A sub-projects, per IDB Invest's definition, will be excluded as well as projects in excess of 10MW, hydropower, and fossil fuel-related efficiency projects.3. Environmental and Social (E&S) Risks and Impacts. The main E&S risks of this projects are associated with the Financial Institution (FI) capacity to identify and manage the E&S risks associated with its lending activities. Banco Pichincha's capacity in this respect is considered high based on previous work with IDB Group and other DFIs (see Mitigation Measures). The Environmental Social Health and Saftety (ESHS) impacts and risks associated with loans to green investments are likely to be moderate in nature. Eligible investments will include renewable energy, energy efficiency, water efficiency, and green buildings.4. Mitigation Measures. Banco Pichincha will be required to ensure that all loans supported under the bond issuance comply with IDB Invest's Exclusion List, applicable E&S local laws, Banco Pichincha's existing Environmental and Social Management System (ESMS), and defined eligibility critiera. The eligibility criteria are defined and establish all conditions that potential sub-loans must meet in order to be considered green. These criteria are in line with the green bonds standards and GBP, and further reflect IDB Invest's Sustainability Policy requirements.5. Environmental and Social Action Plan. Not Required.6. Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the emaildivulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing tomecanismo@iadb.orgorMICI@iadb.org, or calling +1(202) 623-3952.

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

Investment type not specified at the time of the snapshot

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.

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.

Client contact name: Eduardo Urgiles
Title: Treasurer
Phone number: (593 2) 2 980-980
Email address: eurgiles@pichincha.com

Contact Information For project inquiries, including environmental and social questions related to an IDB Invest transaction please contact the client (see Investment Summary tab), or IDB Invest using the email divulgacionpublica@iadb.org. As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org, or calling +1(202) 623-3952.

How it works

How it works