PichinchaGBandSD (IFC-41625)

Countries
  • Ecuador
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
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
Dec 10, 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 CA
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.
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, 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 Nov 23, 2018

Disclosed by Bank Nov 7, 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, the proposed investment in Banco Pichincha (“Pichincha” or “the Bank”), an existing IFC client and Ecuador’s largest bank, consists of: (i) an investment of approximately US$50 million in a green bond for IFC’s own account, as part of the Bank’s US$250 million green bonds program, for the financing of the Bank’s climate smart portfolio, and (ii) an investment of up to US$20 million in a subordinated loan for IFC’s own account, plus a US$30 million mobilization, for the financing of the Bank’s SME portfolio.The Project aims to achieve the following: (i) consolidate a commercial relationship with Pichincha, a strategic client with which IFC can further collaborate through both investment and advisory services, (ii) support the development of local capital markets and climate smart projects by subscribing resources, (iii) enhance the level of credit and financial services offered to underserved SMEs, and (iv) strengthen the Bank’s capital by providing sub-debt which qualifies as Tier II capital under local regulation.

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.

The Project is expected to have a significant Stakeholders impact by aiming to increase access to finance to SMEs in Ecuador, as almost 31% of SMEs are fully or partially credit constrained. The Country's SME finance gap is estimated at US$15.6 billion, which is 16% of GDP. The Project also aims to increase and foster the development of climate smart projects. Ecuador ranks 7th in CO2 emissions in LAC and has committed through the Intended Nationally Determined Contributions to reduce GHG emissions by 25%.

Additionally, the Project is expected to have a significant contribution to market creation through Integration, as the Project is anticipated to be the first green bond to be issued by a bank in Ecuador and will therefore have a demonstration effect for climate smart and sustainability-focused projects through banking institutions, further contributing to greater deepening of financial and capital markets in Ecuador.

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

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 Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Banco Pichincha Investor Finance invests in Aleatica SA Client Transport
Banco Pichincha Investor Finance invests in CVC Advisers Ltd Parent Company Mining
Banco Pichincha Investor Finance invests in Dinatela Xxi Sl Parent Company Industry and Trade
Banco Pichincha Investor Finance invests in Dulmatesa SL Parent Company Agriculture and Forestry
Banco Pichincha Investor Finance invests in Ercros SA Parent Company Industry and Trade
Banco Pichincha Investor Finance invests in Eurotransac SL Parent Company Transport
Banco Pichincha Investor Finance invests in Grupo Logistico Sese SL Parent Company Transport
Banco Pichincha Investor Finance invests in Humanitas Centros De Parent Company Construction
Banco Pichincha Investor Finance invests in Industry Super Holdings Pty Parent Company Transport
Banco Pichincha Investor Finance invests in Investindustrial SA Parent Company Agriculture and Forestry
Banco Pichincha Investor Finance invests in MaxamCorp Holding SL Parent Company Industry and Trade
Banco Pichincha Investor Finance invests in Mll Best Hotels Mgmt Sl Parent Company Construction
Banco Pichincha Investor Finance invests in Montes De Maria 4g Highway Client Transport
Banco Pichincha Investor Finance invests in Natra SA Client Agriculture and Forestry
Banco Pichincha Investor Finance invests in Nuestro Mundo Empresarial Sl Parent Company Construction
Banco Pichincha Investor Finance invests in Ortiz Construcciones y Parent Company Construction
Banco Pichincha Investor Finance invests in Rioja Acquisition Sarl Client Mining
Banco Pichincha Investor Finance invests in Sacyr SA Parent Company Transport
Banco Pichincha Investor Finance invests in Soltec Energias Renovables Sl Parent Company Energy
Banco Pichincha Investor Finance invests in Uquifa Client Education and Health
Banco Pichincha Investor Finance invests in Vivimed Labs Ltd Parent Company Education and Health
Banco Pichincha Investor Finance invests in Vivimed Labs Spain SL Client Education and Health
Banco Pichincha Investor Finance invests in Volcan Cia Minera SAA Parent Company Mining
CVC Advisers Ltd Parent Company Mining owns Rioja Acquisition Sarl Client Mining
Industry Super Holdings Pty Parent Company Transport owns Aleatica SA Client Transport
Investindustrial SA Parent Company Agriculture and Forestry owns Natra SA Client Agriculture and Forestry
Sacyr SA Parent Company Transport owns Montes De Maria 4g Highway Client Transport
Vivimed Labs Ltd Parent Company Education and Health owns Uquifa Client Education and Health
Vivimed Labs Ltd Parent Company Education and Health owns Vivimed Labs Spain SL Client Education and Health

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.

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