Itau-CBC is the bank resulting from the merger between Helm Bank with and into Corpbanca Colombia on June 1, 2014 (the “Colombian merger”). Previously, in June 2012, Chilean-based bank Corpbanca (now Itaú CorpBanca) finalized the acquisition of Banco Santander Colombia S.A., which immediately after was renamed to “Banco CorpBanca Colombia S.A.”.  With this acquisition, former CorpBanca became the first Chilean bank to have a banking subsidiary outside the country. A few months later, in August 2013, former CorpBanca Colombia acquired Helm Bank and subsequently merged it with and into CorpBanca Colombia as previously mentioned. 

Itau-CBC’s controlling shareholder is Itau Corpbanca (ITCB), a listed bank in Chile and in New York. Itaú Corpbanca is the entity resulting from the merger of Banco Itaú Chile with and into Corpbanca on April 1, 2016 (the “Chilean merger”). The current ownership structure of ITCB is: 36.06% owned by Itaú Unibanco (the largest financial institution in Brazil), 30.65% owned by CorpGroup (one of Chile’s leading financial conglomerates), and 33.29% owned by minority shareholders. Itaú Unibanco is the sole controlling shareholder of the Chilean merged bank. Within this context and without limiting the above, Itaú Unibanco and CorpGroup have signed a shareholders’ agreement relating to corporate governance, dividend policy (based on performance and capital metrics), transfer of shares, liquidity and other matters. CorpGroup, additionally, owns a 12.36% share ownership of Itau-CBC.

After the Chilean merger, the Colombian banking subsidiary had to align to the new policies and procedures of its parent who in turn follows Itaú’s guidelines. 

In this context, the Bank was renamed to Itau Corpbanca Colombia in 2017. As of August 31, 2017, Itau-CBC is the 6th largest bank in Colombia, holding a 5.2% market share in terms of loans.

The proposed Project consists of a subordinated debt (Tier II Capital) investment of US$105 million to Itau-CBC to support the Bank’s SMEs and climate-smart lending portfolio. 

Itau-CBC is headquartered in Bogota, Colombia. The Bank currently serves 485,000 clients in 23 cities of Colombia through its 3,600 employees, 175 branches and 176 ATMs.

The project consists of a subordinated loan to support Itaú Corpbanca Colombia’s consolidation in the country, promote the growth of its SME loan portfolio, Climate Smart projects and strengthen its capital requirements. The project has been classified as Category FI-1 according to the IFC's Sustainability Framework. Itaú CBC portfolio has exposure to Project Finance and high E&S risk sectors such as infrastructure, oil & gas and energy. The applicable requirements for this project will include the Exclusion List, compliance with national laws and the Performance Standards.

The main E&S risks and impacts related to the project derive both from the Bank’s capacity to manage portfolio E&S risks as well as to maintain practices with regard to labor and working conditions. Itaú CBC’s portfolio risks are from medium to high nature, especially from its investments in the infrastructure and energy sectors, which typically may include potential impacts on biodiversity, affected communities, pollution and security related themes. As an EP signatory and an existing IFC client, the Bank has an existing ESMS for high-risk sectors aligned with IFC requirements and have dedicated appropriate resources and capacity to managing E&S risks in its portfolio. 

While the IFC requirements apply to the bank’s entire portfolio, IFC and the bank agreed to use the proceeds of the loan to finance SMEs and Climate Smart projects in Colombia. The eligibility criteria for the project will exclude the installation or construction of hydropower plants with a nameplate capacity of over 20 MW or Category A sub-projects.

As part of the proposed project, the Bank will be required to: (1) enhance ESMS procedures for the SME portfolio, (2) provide continuous capacity building; (3) continue its commitment to applying the labor standards established by the IFC Performance Standard as well as (4) submit a periodic report to IFC.