33063 - CCFP Bladex

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Summary of Investment Information

Project Number

33063

Company Name

Banco Latinoamericano de Comercio Exterior S.A.

Date SPI Disclosed

Mar 12, 2014

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Apr 15, 2014

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Gbl Ind, Manufact, Agribus & Services

Industry

Financial Markets

Previous Events

Approved : May 28, 2014
Signed : Jul 17, 2014
Invested : Aug 25, 2014

Sector

Trade Finance

Project Description

The proposed Project falls under the Critical Commodities Finance Program (“CCFP” or the “Program”) (Project No. 31679) approved by the Board on January 12, 2012 as part of IFC’s multi-faceted rapid response to the current financial crisis. Phase two of the Program was approved by the Board on January 31, 2013.

The proposed project involves establishing a funded risk-sharing facility (“Facility”) with Banco Latinomericano de Comercio Externo S.A. (“Bladex” or the “Bank”) for the purpose of providing short-term trade and commodity related financing to local regional commercial entities operating in the agribusiness sector (“Project”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	175.0
Equity

Development Impact

The Project is expected to have a significant development impacts by maintaining funding for trade of critical agricultural inputs and commodities to/from the LAC region. The CCFP is aimed at helping to address the current liquidity constraint faced by both financial institutions and real sector businesses. The CCFP-Bladex facility is expected to have the following development impacts:

- Maintaining access to finance: The Project will maintain the availability of trade and commodity finance mainly for the agriculture sector across many countries in LAC, including lower income countries in Central America. Supporting the stability of credit for the agricultural sector is expected to benefit multiple companies along the agricultural value chain and, thus, support continued growth, sustain employment and encourage the generation of higher incomes going forward. Its support of agricultural imports will enhance food security and help to mitigate potential negative effects of a decrease in the supply of critical staples.

- Strong demonstration effect: IFC will act as a catalyst among others international finance institutions ("IFIs") by supporting commodity backed finance and market reach through partnerships with banks. This will promote commodities as an asset class and encourage banks to participate in funding the critical agricultural sector, which will ultimately help increase access to finance and develop local markets.

IFC''s risk participation will provide liquidity for Bladex to continue to scale up its trade finance operations across Latin America particularly in the agricultural sector. As European banks, traditionally dominant players in this field have pulled back due to their liquidity or capital constraints, American and Asian banks are making inroads to the Latin America region. IFC''s funding through the CCFP program will enable a regional player to continue to grow its trade finance program to fill the gap in the region.

E&S Category Rationale / Risks and Mitigation

This project has been classified as a FI-2 Project according to IFC’s Sustainability Framework. The proposed project is a funded risk-sharing facility to support commodity trade transactions originated by Bladex in agribusiness and energy sectors. Considering the short-term nature of the transactions, E&S risks and impacts associated with this project are expected to be limited. The Applicable Performance Requirements for this project are the IFC Trade Finance Exclusion List and relevant national laws and regulations. The project also requires the application of the Global Map of agricultural commodity production (GMAP), completion of counterparty assessment for “red” combination and final clearance to support (or not) from CESI.

The key E&S risks and impacts of this project are the ability of Bladex to identify and manage the risks associated with its trade transactions involving (i) agricultural commodities that may engage in harmful child or forced labor and that may have impacts on biodiversity through conversion of natural and critical habitats, such as soybean and cotton productions in Brazil, and (ii) other E&S issues associated with obligors.

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Local Access of Project Documentation

Pierre Dulin
SVP - Head of Financial Solutions
& Miami Representative Officer
Banco Latinoamericano de Comercio Exterior, S.A.
1001 Brickell Bay Drive, Miami, Fl. 33131
(305) 358-8801
(786) 553-5194
http://www.bladex.com

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Title & Description	Anticipated Completion Date	Status	Comments	Completion Date
Nominate officers		Completed	Completed	07/17/2014
Establish SEMS		Completed	Completed	07/17/2014
Reputation risk screen		Completed	Completed	07/17/2014

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