Produbanco BIO (IFC-50260)

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
Oct 21, 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 de la Produccion S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • 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)
$ 150.00 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)
$ 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.
Project Cost (USD)
$ 200.00 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 Sep 16, 2024

Disclosed by Bank Sep 10, 2024

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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.

As stated by the IFC, the proposed project consists of a senior financing package of up to US$150 million with a tenor of five years and a two-year grace period. IFC would directly commit up to US$100 million in senior loans and mobilize up to US$50 million through credit insurance. Additionally, IFC will seek to mobilize up to US$50 million in B/Parallel loans, completing the financing package.

IFC anticipates that the project will increase access to finance for a wide range of sustainable activities, specifically climate smart sub-projects, SMEs and women-owned SMEs. IFC also expects that the subprojects financed with the loan proceeds will benefit biodiversity in Ecuador and provide climate mitigation and adaptation co-benefits. Additionally, IFC anticipates that the project, together with other biodiversity debt instruments in LAC as part of an approved programmatic approach, will encourage financial institutions in the region to structure similar instruments and investors to allocate capital to environmental challenges through biodiversity financing.

           

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.

As stated by the IFC, 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 (biodiversity related loans); and ii) climate smart agriculture, green buildings, small scale renewable energy, energy efficiency, etc.(climate related loans); and are expected to be mostly of medium E&S risk nature. Potential risks are context specific with respect to location risks or industrial technologies and may include impacts on biodiversity and sustainable management of living natural resources, pollution prevention, labor, working conditions and impacts on communities. 

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, Produbanco is the second largest private bank in Ecuador with a market share of 12.33% in terms of assets. The Bank reported assets of US$7.5 billion and equity of US$597 million as of December 31, 2023. Founded in 1978 as a financial institution mostly focused on corporates, it has broadened its business lines and developed a broad geographic presence in the country with 128 branches and 409 ATMs throughout 17 provinces in the country.

Promerica Financial Corporation (Promerica or PFC) controls Produbanco. Promerica is one of Central America’s largest financial conglomerates with operations in eight countries, in addition to Ecuador. As of December 2023, it reported consolidated assets of US$21.7 billion, an equity of US$1.84 billion, and a network of over 3.7 million clients and 812 branches across the region.  


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
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediary - Banco de la Produccion S.A.:

Maria Isabel Rodriguez - Coordinador Corresponsales y Multilaterales
Phone: +593 2 299 9000 ext. 7307
Email: rodriguezm@produbanco.com 
Address: Centro Corporativo Ekopark, Torre 1, Av. Simón Bolívar y Vía a Nayón
Website: www.produbanco.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

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How it works