Pichincha SD (IFC-49899)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
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
B
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
Nov 20, 2024
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
  • Agriculture and Forestry
  • Energy
  • Finance
  • Industry and Trade
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)
$ 60.00 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)
$ 60.00 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)
$ 100.00 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 Oct 22, 2024

Disclosed by Bank Oct 18, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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 IFC, the proposed investment consists of 7-year/5-year grace subordinated loan of up to US$100 million to Banco Pichincha Ecuador (Pichincha or the Bank), an existing IFC client. IFC expects to commit up to US$60 million for its own account, out of which US$20 million is expected to benefit from unfunded credit insurance. Additionally, IFC expects to mobilize up to US$40 million from B-lenders.

The proceeds will be used to finance women-owned microenterprises and to finance blue eligible projects and climate smart agriculture eligible projects.

IFC will potentially support Pichincha with a climate finance advisory engagement to help identify blue finance-related assets, update its framework, tools, and methodologies to incorporate blue assets in line with IFC’s blue finance guidelines to support the growth of its blue portfolio, and provide training and capacity building.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project has been categorized as FI-2. The E&S risks and impacts of the project are derived from the bank's capacity to assess and manage E&S risks associated with the project's pipeline in sectors such as: i) certified agriculture and aquaculture for (blue related loans); ii) climate smart agriculture, (climate related loans) and iii) retail, manufacturing (women-owned microenterprise related loans); and are expected to be mostly of medium E&S risk nature.

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 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.

As stated by the IFC, incorporated in Ecuador in 1906, Pichincha is Ecuador's largest financial institution, with a 28% market share in loans. The Bank has a diversified business model, with commercial (including SME and corporate) and consumer segments representing approximately 76% of its loan portfolio, and mortgages and microloans representing the remaining 24%. The Bank is also the largest microfinance lender, with a market share of 57% within the banking system. Banco Pichincha is present in all 24 provinces of the country through a total of 11,824 points of service: 236 branches, 8,802 correspondent agents and 1,426 ATMs.


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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Phone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - Banco Pichincha CA:

Victor Quirola - Senior Trader
Phone: +593 (2) 2999 999
Email: vquirola@pichincha.com
Address: Av. Amazonas 4545 y Pereira, Quito, Ecuador
Website: www.pichincha.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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