Scotia El Salvad SME and Housing Loan (IFC-38771)

Countries
  • El Salvador
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
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 31, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
SCOTIABANK EL SALVADOR SA
The holder of the loan, grant, or other investment.
Ring Fence
  • Small & Medium Enterprises
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 Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Feb 27, 2017


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Project Description

The project consists of a 7 year loan up to US$50 million to Scotiabank El Salvador S.A. to fund the growth of lending to small and medium enterprises (“SMEs”) and low and middle income home owners in El Salvador.

People Affected By This Project

Contribution to Economic Growth. The Project is expected to contribute to the WBG goals by supporting economic growth in El Salvador by providing long term access to finance to SMEs and mortgages through a leading bank in a market faced with poverty and a large housing deficit. Increased access to finance to SMEs is also believed to assist in creating opportunities for jobs, which is considered a critical link in poverty reduction and economic growth; two areas identified in El Salvador as challenges to be tackled. \r\rDemonstration Effect: By providing long term funding to Scotia El Salvador, which is new in the market, IFC hopes to create a competitive environment in the banking sector and encourage other banks in El Salvador to seek and provide financing with longer terms. IFC's loan hopes to increase availability of longer tenor lending instruments to provide low and middle income mortgages and financing for SMEs.

Investment Description
Financial Intermediary
Financial Intermediary: A commercial 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

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

The project sponsor is Scotiabank El Salvador, which is the leader in mortgage segment with a market share of 33.3% in El Salvador. Its parent company is The Bank of Nova Scotia, a publicly listed, international universal bank in Canada which globally serves over 23 million customers. The parent is active in 11 countries across Latin America through its subsidiary operations.

Scotiabank El Salvador is a subsidiary of Inversiones Financieras Scotiabank El Salvador, which is 99.8 percent owned by the Bank of Nova Scotia and the remainder owned by minority shareholders. Inversiones Financieras controls 88.7 percent of the shares of Scotiabank El Salvador, while BNS directly owns the remaining 10.8 percent.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
0955662 BC Ltd Parent Company Agriculture and Forestry owns Dye & Durham Co Inc Client Agriculture and Forestry
Actis LLP Parent Company Energy owns Actis Power Portfolio Acq Client Energy
Advent International Corp Parent Company Education and Health owns Grupo Farmaceutico Somar SAPI Client Education and Health
AES Corp Parent Company Energy owns AES Colon Gas-Fired Power Client Energy
AGT Food & Ingredients Inc Parent Company Agriculture and Forestry owns Alliance Pulse Processors Inc Client Agriculture and Forestry
Algonquin Power & Utilities Parent Company Energy owns Liberty Utilities Co Client Energy
Arca Continental SAB de CV Parent Company Agriculture and Forestry owns Corporacion Lindley SA Client Agriculture and Forestry
ATCO Ltd Parent Company Energy owns CU Inc Client Energy
Australia Parent Company Energy owns Ausgrid Finance Pty Ltd Client Energy
Bank of Nova Scotia Parent Company Energy owns Termoyopal-El Morro Power Client Energy
Berkshire Hathaway Inc Parent Company Energy owns AltaLink LP Client Energy
Berkshire Hathaway Inc Parent Company Energy owns Berkshire Hathaway Energy Co Client Energy
Berkshire Hathaway Inc Parent Company Energy owns Midamerican Energy Co Client Energy
Berkshire Hathaway Inc Parent Company Energy owns Nevada Power Co Client Energy
Berkshire Hathaway Inc Parent Company Energy owns Sierra Pacific Power Co Client Energy
Birch Hill Eq Partners Mgmt Parent Company Communications owns Creation Technologies LP Client Communications
Broadcom Inc Parent Company Communications owns Broadcom Corp Client Communications
Brookfield Asset Management Parent Company Energy owns Gas Natural Sa Acq Client Energy
Brookfield Asset Management Parent Company Energy owns TerraForm Power Inc Client Energy
Brookfield Infrastructure Parent Company Construction owns EnerCare Solutions Inc Client Construction
BSA International SA Parent Company Agriculture and Forestry owns Groupe Lactalis SA Client Agriculture and Forestry
BSA SAS Parent Company Agriculture and Forestry owns Groupe Lactalis SA Client Agriculture and Forestry
BSA SAS Parent Company Agriculture and Forestry owns Parmalat Canada Client Agriculture and Forestry
Canada Parent Company Energy owns Hydro One Inc Client Energy
Canada Parent Company Energy owns Hydro One Ltd Client Energy
Capital regional et cooperatif Parent Company Construction owns Telecon Group Client Construction
Castle & Cooke Inc Parent Company Agriculture and Forestry owns Dole Food Co Inc Client Agriculture and Forestry
CCMP Capital Advisors LP Parent Company Education and Health owns Jamieson Laboratories Ltd Client Education and Health
CK Asset Holdings Ltd Parent Company Construction owns Reliance Home Comfort LP Client Construction
CK Hutchison Holdings Ltd Parent Company Energy owns Stanley Power Inc Client Energy
CMS Energy Corp Parent Company Energy owns Consumers Energy Co Client Energy
Coca-Cola Bottling Co Cons Parent Company Agriculture and Forestry owns Coca-Cola Bottling Canada Client Agriculture and Forestry
Coco Group Parent Company Construction owns Coco Paving Inc Client Construction
Cosan Ltd Parent Company Agriculture and Forestry owns Usina da Barra SA(Grupo Cosan) Client Agriculture and Forestry
CWAL Investments Ltd Parent Company Communications owns Coast Wholesale Appliances LP Client Communications
Dell Technologies Inc Parent Company Communications owns Dell Finl Svcs Pty Ltd Client Communications
DTE Energy Co Parent Company Energy owns DTE Electric Co Client Energy
Duke Energy Corp Parent Company Energy owns Progress Energy Inc Client Energy
E ON SE Parent Company Energy owns Kentucky Utilities Co Client Energy
Eastern Maine Railway Co Ltd Parent Company Agriculture and Forestry owns JD Irving Ltd Client Agriculture and Forestry
Emera Inc Parent Company Energy owns Nova Scotia Power Inc Client Energy
Emera Inc Parent Company Energy owns TECO Energy Inc Client Energy
Enel SpA Parent Company Energy owns Enel Chile SA Client Energy
Evertec Inc Parent Company Communications owns EVERTEC Group LLC Client Communications
Exelon Corp Parent Company Energy owns Baltimore Gas & Electric Co Client Energy
Exelon Corp Parent Company Energy owns Exelon Generation Co LLC Client Energy
Exelon Corp Parent Company Energy owns Potomac Electric Power Co Client Energy
Fortis Inc Parent Company Energy owns FortisAlberta Inc Client Energy
Fortis Inc Parent Company Energy owns FortisBC Energy Inc Client Energy
Fortis Inc Parent Company Energy owns FortisBC Inc Client Energy
Fortis Inc Parent Company Energy owns ITC Great Plains LLC Client Energy
Fortis Inc Parent Company Energy owns ITC Midwest LLC Client Energy
Fortis Inc Parent Company Energy owns Michigan Electric Transmission Client Energy
Fortis Inc Parent Company Energy owns Newfoundland Power Client Energy
Fortis Inc Parent Company Energy owns Tucson Electric Power Co Client Energy
Fortis Inc Parent Company Energy owns UNS Electric Inc Client Energy
Fortis Inc Parent Company Energy owns UNS Energy Corp Client Energy
GDC Transition Co Parent Company Construction owns Guardian Industries Corp Client Construction
Graham Group Inc Parent Company Construction owns Graham Construction Co Client Construction
Grupo Argos SA Parent Company Construction owns Argos N America Corp Client Construction
Grupo Argos SA Parent Company Energy owns EPSA Client Energy
Grupo Bio Pappel SA de CV Parent Company Agriculture and Forestry owns Bio Pappel SAB de CV Client Agriculture and Forestry
HNA Technology Co Ltd Parent Company Communications owns Ingram Micro Inc Client Communications
Honeywell International Inc Parent Company Construction owns Honeywell Intl Inc-Homes & Client Construction
Hylife Invests Ltd Parent Company Agriculture and Forestry owns Hylife Ltd Client Agriculture and Forestry
Iberdrola SA Parent Company Energy owns Iberdrola Mexico SA de CV Client Energy
Ingersoll-Rand PLC Parent Company Construction owns Ingersoll-Rand Glbl Hldgs Co Client Construction
Inver Angelini Parent Company Construction owns Sonae Arauco SA Client Construction
James Richardson & Sons Ltd Parent Company Agriculture and Forestry owns Richardson International Ltd Client Agriculture and Forestry
Kruger Inc Parent Company Agriculture and Forestry owns Kruger Products LP Client Agriculture and Forestry
Kuwait Investment Authority Parent Company Energy owns Global Power Generation SA Client Energy
Lanxess AG Parent Company Construction owns Davis-Standard Corp Client Construction
Macquarie Grp Ltd Parent Company Energy owns Puget Energy Inc Client Energy
Macquarie Grp Ltd Parent Company Energy owns Puget Sound Energy Inc Client Energy
Ministry of Finance Singapore Parent Company Agriculture and Forestry owns Olam International Ltd Client Agriculture and Forestry
NextEra Energy Inc Parent Company Energy owns Florida Power & Light Co Client Energy
NextEra Energy Inc Parent Company Energy owns Gulf Power Co Client Energy
NextEra Energy Inc Parent Company Energy owns NextEra Energy Capital Hldg Client Energy
NextEra Energy Inc Parent Company Energy owns NextEra Energy US Partners Client Energy
Onex Corp Parent Company Communications owns Celestica Inc Client Communications
Onex Corp Parent Company Construction owns WireCo WorldGroup Inc Client Construction
Ontario Power Generation Inc Parent Company Energy owns Lower Mattagami Energy LP Client Energy
Ontario Teachers' Pension Plan Parent Company Construction owns Alliance Laundry Systems LLC Client Construction
Pembina Pipeline Corp Parent Company Energy owns York Energy Centre Client Energy
Pinnacle West Capital Corp Parent Company Energy owns Arizona Public Service Co Client Energy
PJM Interconnection LLC Parent Company Energy owns Commonwealth Edison Co Client Energy
PJM Interconnection LLC Parent Company Energy owns Duquesne Light Co Client Energy
PPL Corp Parent Company Energy owns EON US Holdings LLC Client Energy
PPL Corp Parent Company Energy owns PPL Capital Funding Inc Client Energy
PPL Corp Parent Company Energy owns PPL Electric Utillities Corp Client Energy
Rank Group Ltd Parent Company Agriculture and Forestry owns Reynolds Group Holdings Ltd Client Agriculture and Forestry
Seaboard Flour Llc Parent Company Agriculture and Forestry owns Butterball LLC Client Agriculture and Forestry
Swander Pace Capital LLC Parent Company Agriculture and Forestry owns Voortman Cookies Ltd Client Agriculture and Forestry
Thai Beverage PCL Parent Company Construction owns Frasers Ppty Australia Pty Client Construction
The Carlyle Group Inc Parent Company Construction owns Jfk Intl Airport Terminal One Client Construction
Torquest Partners Inc Parent Company Construction owns Polycor Inc Client Construction
Vinci SA Parent Company Construction owns Renouveau La Fontaine Inc Client Construction
Votorantim SA Parent Company Construction owns Votorantim Cimentos SA Client Construction
Wesco International Inc Parent Company Communications owns WESCO Distribution Inc Client Communications
Wynnchurch Capital LP Parent Company Construction owns Polycor Inc Client Construction

Contact Information

Company: Scotiabank El Salvador S.A.
Point of Contact: Ana Trabanino / Title Head of Treasury
Telephone Number (503) 2234-4516
Email: Ana.Trabanino@scotiabank.com.sv
Mailing Address: Centro Financiero 25 Av. Norte y 23 Calle Poniente No. 1230 San Salvador, El Salvador, C.A.
Website: http://www.scotiabank.com.sv/banca-personal/default.aspx

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/