Banco Pichincha C.A. (FMO-53637)

Countries
  • Ecuador
Where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
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
Dec 11, 2018
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
Banco Pichincha C.A.
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
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 Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ FMO website

Updated in EWS May 20, 2021


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Project Description

This loan will be earmarked for financing of female MSMEs to support reducing inequalities and gender equality.

FMO proposes to arrange a syndicated facility and takes USD 20 mln for its own account. The facility will be subordinated such that it qualifies as Tier 2 capital for Banco Pichincha regulatory capital. The proceeds of the loan will further be earmarked to finance women-owned 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

Banco Pichincha C.A. is Ecuador’s largest bank with more than 100-year old history. It accounts for 28.4% of the banking system’s assets in 2017. Pichincha has a diverse business model but is mainly retail driven. The bank has a stable and diversified deposit funding base. The group has presence in four countries, including Ecuador, the U.S. (a branch in Miami), Colombia and Spain. Pichincha has been an anchor FMO client in Ecuador since 2011.

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

No contact information provided at the time of disclosure. 

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism