BI Regional (IFC-39011)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Guatemala
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
Jan 27, 2017
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 Industrial SA
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)
$ 110.00 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.
Loan Amount (USD)
$ 110.00 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)
$ 190.00 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 15, 2018

Disclosed by Bank Dec 14, 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, BiCapital is a leading financial services group in Guatemala, with a growing presence in Honduras, El Salvador and Panama. It provides a comprehensive range of corporate and retail banking, insurance and other financial services to over 1.7 million clients in the region.  Banco Industrial in particular, is the banking arm of the group that provides commercial and retail financial services in Guatemala and El Salvador, and the target of IFC’s proposed investment. The opportunity available for IFC is to support Banco Industrial’s operations in Guatemala and El Salvador through an investment comprised of:

1. A regional credit line for up to US$ 190 million in the form of straight senior long-term loans allocated, US$ 175 million to Banco Industrial Guatemala, and US$ 15 million to Banco Industrial El Salvador, to be used to finance SMEs, and climate smart and;

2. An advisory services component targeted to support Banco Industrial Guatemala on its objective to enhance its capacity on Sustainable Energy Finance.

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

The proposed IFC investment is in the form of senior long-term loans allocated as follows:
-- Banco Industrial Guatemala: US$ 100 million A loan for IFC’s own account + US$ 75 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program (“MCPP”),
-- Banco Industrial El Salvador: US$ 15 million A loan
The IFC board approved $110 million.

More on BI:
BiCapital is a 100% privately-held institution formed in November 2006 as a holding company incorporated under the laws of Panama. Its primary assets (85%) include Banco Industrial Guatemala, and Seguros El Roble, the largest bank and insurance company in the country, respectively, which are also among the most profitable entities in the Guatemalan banking and insurance systems with ROAE of 18.2%, according to the Guatemala Superintendence of Banks (“GSB”). BiCapital Corporation has a highly pulverized shareholding structure with over 2000 individuals. Simultaneously, Banco Industrial Guatemala owns 90% of Banco Industrial El Salvador with the remaining 10% distributed among several minority shareholders.

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.

BiCapital is a 100% privately-held institution formed in November 2006 as a holding company incorporated under the laws of Panama. Its primary assets (85%) include Banco Industrial Guatemala, and Seguros El Roble, the largest bank and insurance company in the country, respectively, which are also among the most profitable entities in the Guatemalan banking and insurance systems with ROAE of 18.2%, according to the Guatemala Superintendence of Banks (“GSB”).

BiCapital Corporation has a highly pulverized shareholding structure with over 2000 individuals. Simultaneously, Banco Industrial Guatemala owns 90% of Banco Industrial El Salvador with the remaining 10% distributed among several minority shareholders.


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: Luis Jorge Sifontes
Division Internacional, Banco Industrial 
Contact No.: (502) 2420-3000 Ext.: 2959
Email Address: lsifontes@bi.com.gt
www.bi.com.gt

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/

How it works

How it works