Banco Galicia is owned by Grupo Financiero Galicia (CFG) that currently holds 94.66% of the total capital of the Bank, while most of the balance 5.34% is owned by two minority shareholders, Lagarcue S.A and Theseus S.A. GFG is a financial services holding company formed in 1999 to hold the capital stock of Banco Galicia held by members of the Escasany, Ayerza and Braun families. GFG is listed on the Buenos Aires Stock Exchange, the Córdoba Stock Exchange and NASDAQ Capital Market.

IFC is a 0.5% shareholder in GFG via preferred shares acquired as part of the Bank’s foreign debt restructuring.

The proposed investment consists of a Senior Loan of up to $50 million or its equivalent in local currency to fund (Eligible Sub-Projects) located in Argentina and especially in frontier provinces.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

Banco Galicia is headquartered in Buenos Aires, Argentina. The Bank operates one of the most extensive and diversified distribution networks among private sector banks in the country, offering more than 390 points of contact with customers through its branches and electronic banking facilities.

The project will have a significant developmental impact in several areas related to enhancing access to finance for SMEs enabling these target SMEs to undertake their strategic capital investments, and continue supporting economic growth and job creation. The anticipated development impacts of the project are:

- Enhance access to finance for SMEs;
- Support the development frontier regions of Argentina; and
- Promote investment.

IFC would play an important role in providing access to term funding to SMEs and frontier regions of the country.

This investment will enable IFC to access the large and steadily expanding Argentine SME and mid-size corporate sectors that have established an impressive track record in boosting Argentina’s economy and export revenues and are generating considerable demand for term funding to finance capital expenditure and capacity expansion programs.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the FI portfolio and considering IFC’s investment. The Applicable Performance Requirements are: The IFC FI Exclusion List and The applicable National Social and Environmental Laws and regulations.

While the client is an existing client, as this project will apply IFC''s new environmental and social review procedure, IFC will review the effectiveness of the implementation of the requirements under the existing transaction. IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS. Based on the review, the project will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC.