35132 - Improsa W SME

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

35132

Company Name

Banco Improsa SA

Date SPI Disclosed

Oct 8, 2014

Country

Costa Rica

Region

Latin America and the Caribbean

Projected Board Date

Nov 14, 2014

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Nov 13, 2014
Signed : Nov 16, 2014
Invested : Dec 23, 2014

Sector

Commercial Banking - General

Additional Project Attributes

Blended Finance

Project Description

Expanding coverage and providing financing to Small and Medium Enterprises (“SMEs”) and Women Owned Enterprises (“WOE”) is critical in supporting sustainable economic growth and job creation. In this context, the proposed project is part of IFC’s program to promote financing to SMEs and WOEs in Central America. To achieve this, IFC would be partnering with Banco Improsa (“Improsa” or “the Bank”) an existing IFC client in expanding its financing activities to SMEs, and in particular to WOE.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

- Increase financing to SMEs which is expected to have a significant impact in terms of job creation and economic growth.
- Increase financial inclusion for women entrepreneurs in Costa Rica leading to a sustained and more equitable growth as women entrepreneurs create jobs that are more likely to employ other women.
- Women are more likely than men to contribute additional income to household poverty reduction and improved nutrition and schooling for their children. Access to credit and increasing economic power for women will translate into improved likelihoods for a wide cross-section of society.

Financing to SME and WOE: The IFC Loan will help the Bank expand its business activities to SMEs, in particular to women-owned SMEs, by providing more adequate financing at a time when there is limited availability of long term funding.
WOE: This project is expected to validate the viability and profitability of the WOE segment and should have a demonstration effect that leads to an improvement in access to finance for women in Costa Rica. As a result of the proposed project, the Bank would strengthen its focus on women-owned enterprises as a separate sub-segment within their traditional SME segment
Knodledge Transfer: IFC would provide its knowledge and experience in women banking in order to develop a value proposition tailored for this segment. The project leverages on the Bank''s knowledge of the market and countrywide reach to have a broad impact throughout the Country in supporting WOE.

E&S Category Rationale / Risks and Mitigation

The project involves IFC support to Banco Improsa lending activities in the small, medium enterprise (“SME”) segment. The IFC loan will help Improsa access longer tenors and at the same time expand its business activities to SME’s, in particular women-owned enterprises. The Bank has a diversified portfolio, which includes sectors with limited environmental and social (E&S) risks such as commercial, service industry and retail loans. As such, this project has been classified as Category FI-2 according to IFC''s Sustainability Framework. For this project the Bank will be required to: (i) Ensure that all SME loans are screened against Costa Rican environmental and social laws and requirements and the IFC Exclusion List; ii) Comply with the requirements of the Performance Standard 2 Labor and Working Conditions, (iii) Submit a periodic report as per a format to be provided by IFC.

The main E&S risks of this project are associated with the impacts of the activities financed by Improsa. Potential risks for SME lending revolve mostly around occupational health and safety aspects and pollution prevention (i.e., solid waste management and waste water management). Banco Improsa is in the process of enhancing its Environmental and Social Management System (“ESMS”). The scope of the revised procedures will include the provision of the IFC Performance Standards, IFC Exclusion List and host country laws and regulations.The main E&S risks of this project are associated with the impacts of the activities financed by Improsa. Potential risks for SME lending revolve mostly around occupational health and safety aspects and pollution prevention (i.e., solid waste management and waste water management). Banco Improsa is in the process of enhancing its Environmental and Social Management System (“ESMS”). The scope of the revised procedures will include the provision of the IFC Performance Standards, IFC Exclusion List and host country laws and regulations.

Task Title & Description
Anticipated Completion Date
Enhance the Bank’s Environmental and Social Management System. The scope of the
policy will include the IFC Performance Standards (2012), host country laws and
requirements and the IFC Exclusion List.
Prior to IFC Disbursement
Implement the enhanced ESMS and provide IFC with examples of E&S due diligence
undertaken during the initial roll-out phase for transactions.
Within 90 days after IFC Disbursement
Prepare an ESMS Implementation and Staff Training Plan, specifying the proposed
schedule for rolling out the upgraded ESMS across the various business units
and training to be provided to ensure the relevant staff has adequate capacity
for ESMS implementation.
Prior to IFC Disbursement
Enhance Human Resources Policy to be consistent with the IFC Labor and Working
Conditions provisions (PS 2) . This will include the development of a
non-discrimination policy.
Within 90 days after Disbursement

Task Title & Description	Anticipated Completion Date
Establish SEMS	10/31/2014
Formalize procedures	01/04/2015
Staff Training	11/30/2014
Enhance HR policy	01/04/2015

Task Title & Description	Anticipated Completion Date
Establish SEMS	10/31/2014
Formalize procedures	01/04/2015
Staff Training	11/30/2014
Enhance HR policy	01/04/2015

Contacts

For Inquiries About the Project, Contact

Mr. Yamil Carranza
Banco Improsa
Apartado 4-2300 Curridabat.
San Jose
Costa Rica
Tel: +5062284 4090
Fax: +5062284 4009
http://www.improsa.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

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.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

FIG Use of Proceeds/Beneficiaries

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer