Davivienda CR II (IFC-38501)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Costa Rica
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
Jul 5, 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 Davivienda (Costa Rica) 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)
$ 30.00 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 31, 2018

Disclosed by Bank Jun 2, 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.

The project consists of a loan of up to US$30 million to Banco Davivienda (Costa Rica), S.A., for on-lending to small and medium sized enterprises (SMEs) and low and middle income mortgages.

The goals of the loan are to increase banking penetration and access to credit to underserved SMEs and individuals; increase employment; lower greenhouse emissions and encourage efficient management and re-use of scarce resources; and demonstration effect with other banks replicating this type of funding. The investment aims to support Banco Davivienda's effort in diversifying its funding sources, deepening its participation in the SME segment, as well as expanding the Bank's low and middle income mortgage activity.

The proposed investment is intended to be used for SMEs and housing. Davivienda focuses its operations in three segments: retail (15%), housing (26%), and commercial loans (59%) which includes both SMEs and corporate loans. SME lending under the asset class supported accounts for approximately 3% of the total portfolio. The overall portfolio risks includes a limited number of business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. The project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy. For this project Davivienda will be required to screen the loans against the IFC Exclusion List and the Costa Rican environmental and social laws and regulations.

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

Banco Davivienda (Costa Rica), S.A. is a subsidiary of Banco Davivienda S.A. (Colombia). Banco Davivienda S.A. owns 100% of Grupo del Istmo Costa Rica S.A., which in turn owns 99.92% of Corporacion Davivienda (Costa Rica), S.A. which in turn owns 100% of the Bank. Sociedades Bolivar, a financial conglomerate in Colombia, owns directly and indirectly 55.5% of Banco Davivienda S.A. with the remaining ownership comprised of preferred shares (22.3%), IFC 1.97% and others (around 20%).

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.

anco Davivienda (Costa Rica), S.A. is a subsidiary of Banco Davivienda S.A. (Colombia). Banco Davivienda S.A. owns 100% of Grupo del Istmo Costa Rica S.A., which in turn owns 99.92% of Corporacion Davivienda (Costa Rica), S.A. which in turn owns 100% of the Bank. Banco Davivienda S.A. is the third largest bank in Colombia in terms of loans and assets. Sociedades Bolivar, the third largest locally-owned financial conglomerate in Colombia owns directly and indirectly 55.5% of Banco Davivienda S.A. with the remaining ownership comprised of preferred shares (22.3%), IFC 1.97% and others (around 20%).


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: Federico Chaves Sáenz
Director de Finanzas, Banco Davivienda (Costa Rica) S.A.
Email Address: federico.chaves@davivienda.cr
Tel: (506) 25889000 ext. 9310
Office Address: Torre Davivienda, Costa Rica


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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