PROJECT

Projects

Summary of Investment Information

Project Number

48228

Company Name

BANCO INDUSTRIAL SA

Date SPI Disclosed

Oct 12, 2023

Country

Guatemala

Region

Latin America and the Caribbean

Projected Board Date

Nov 15, 2023

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 8, 2023

Department

Regional Industry FIG LAC & EUR

Industry

Financial Markets

Previous Events

Approved : Dec 1, 2023
Signed : Dec 4, 2023
Invested : Dec 6, 2023

Sector

Commercial Banking - General

Project Description

 The proposed project is an up to US$220 million financing package for Banco Industrial S.A. (“Banco Industrial” or the “Bank”) in Guatemala, consisting of: (i) an up to US$170 million senior unsecured A loan for IFC’s own account (IFC A Loan), part of which benefits from (ii) up to US$75 million unfunded mobilization through the MCCP FIG program, in which IFC will transfer the credit risk to insurance companies, which results in a net IFC own-account exposure of not more than US$95 million, and (iii) a trust loan of up to US$50 million from IFC acting in its capacity as the implementing entity for the Managed Co-Lending Portfolio Program (MCPP).

 

The loan proceeds will be used to fund the growth of the Bank’s small and medium enterprise (SME) and climate-related assets , which is expected to be at least the 40% of the proceeds (the Project). The proposed senior unsecured IFC A Loan will have a maturity of up to 4-years, with a 1-year grace period.                                                   

Associated Advisory Engagement

 IFC’s Climate Finance

 A potential climate finance advisory engagement with Banco Industrial will support the Bank in expanding and diversifying its operations in climate finance and further developing the green building business in the country.                                                  

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation