PATAGONIA CL II (IFC-38119)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Argentina
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
Approved
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
May 27, 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
BANCO PATAGONIA S.A.
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)
$ 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 28, 2018

Disclosed by Bank Apr 22, 2016

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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 IFC website, the project consists of a 5-year loan for up to US$50 million to be provided by IFC to Banco Patagonia S.A. to support its lending activities to export-oriented small and medium enterprises. Further, Banco Patagonia is a full service bank, which provides general banking services with significant presence in the retail and SMEs sectors. As of December 2015, Banco Patagonia is the ninth bank in Argentina in terms of assets and loans, with a market share of 3.5%, and tenth in terms of deposits. The Bank has 3,361 employees and more than 1 million active clients.

IFC's long-term financing is expected to bring high development impact by enhancing Banco Patagonia's capacity to support access to finance for SMEs. SME finance is a key priority for IFC and this project contributes to reducing the financing gap by providing scarce long-term financing to SMEs, thus helping them support capital expenditure programs and investment in capacity expansion leading to employment generation and growth.

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

Banco Patagonia’s main shareholder is Banco do Brasil S.A. (“BB”), which is the oldest and largest bank in South America in terms of total assets, and the largest in Brazil by assets, deposits and branches. BB is controlled by the Brazilian Federal government, which holds 57.7% of its shares.
Other shareholders include former founders and management of Banco Patagonia, Emilio Gonzalez Moreno and Ricardo and Jorge Stuart Milne, which currently hold 21.4% of the Bank’s capital. In addition, following the nationalization of pension funds, the Argentine government holds a 15.3% stake in Banco Patagonia through the ANSES (Social Security Administration). Moreover, the Province of Rio Negro is also a minority shareholder with a 3.2% stake.

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.

Banco Patagonia’s main shareholder is Banco do Brasil S.A. (“BB”), which is the oldest and largest bank in South America in terms of total assets, and the largest in Brazil by assets, deposits and branches. BB is controlled by the Brazilian Federal government, which holds 57.7% of its shares.
Other shareholders include former founders and management of Banco Patagonia, Emilio Gonzalez Moreno and Ricardo and Jorge Stuart Milne, which currently hold 21.4% of the Bank’s capital. In addition, following the nationalization of pension funds, the Argentine government holds a 15.3% stake in Banco Patagonia through the ANSES (Social Security Administration). Moreover, the Province of Rio Negro is also a minority shareholder with a 3.2% stake.


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.

Project Contact: Mariana Sciarrillo
Manager of International Businesses, Banco Patagonia
Avenida de Mayo 701, Buenos Aires, Argentina
Telephone No.: +54 11 4132 6054

ACCOUNTABILITY MECHANISM OF IFC

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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