35525 - Internac Loan

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Summary of Investment Information

Project Number

35525

Company Name

Banco Internacional S.A.

Date SPI Disclosed

Jan 30, 2015

Country

Ecuador

Region

Latin America and the Caribbean

Projected Board Date

Mar 3, 2015

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Mar 6, 2015
Signed : Mar 19, 2015
Invested : Mar 30, 2015

Sector

Commercial Banking - General

Project Description

The proposed transaction aims to partner with Banco Internacional in Ecuador (the “Bank” or “Internacional”) through a senior loan to support the Bank’s growth of its small and medium enterprises (“SMEs”) loan portfolio, in particular for women owned enterprises (“WOE”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

Development Impact

**The development impact of the project is expected to be high, as it will enhance the Bank''s capacity to support productive SMEs which will in turn stimulate growth, employment generation and poverty reduction. The Bank is expected to leverage on IFC''s experience and track record in the SME and WOE segments.

The Project is expected to create a demonstration effect for other financial institutions in Ecuador in terms of supporting women in business.**

IFC would support the Bank in deepening its participation in the SME segment, an underserved sector in Ecuador, in part due to lack of financing and short tenors. IFC''s longer tenor funding and expertise in the SME and WOE segments will support the Bank''s growth in these critical segments.

IFC will introduce international best practices in environmental policies, strengthening the Bank''s environmental management.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project involves IFC support to Internacional’s lending activities in the SMEs segment. The Bank has a diversified SME

portfolio, which includes sectors with limited environmental and social (E&S) risks such as agriculture, construction, manufacturing and forestry. 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 loans in the asset classes supported avoid supporting

activities on the IFC Exclusion List and comply with E&S local laws, 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.

Contacts

For Inquiries About the Project, Contact

Mauricio Larrea
Banco Internacional
Avenida Patria E4-21 y 9 de Octubre
Quito, Ecuador
Telephone: +593 2 400 9100

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Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

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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.

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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.

Task Title & Description	Anticipated Completion Date
Nominate officers	02/27/2015
Establish SEMS	03/16/2015
Staff Training	03/16/2015
(i) Develop a grievance mechanism and a non-discrimination policy; (ii) Establish specific E&S due diligence procedures and tools to screen and monitor palm oil related SMEs.	03/16/2015

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