Summary of Proposed Investment
Project Number
8663
Company Name
BANCO CUSCATLAN, S.A.
Date SPI Disclosed
Mar 9, 1998
Country
El Salvador
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : May 20, 1998
Signed : Nov 16, 1998
Invested : Apr 19, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | EL SALVADOR: Banco Cuscatlán |
| Region | Latin America & Caribbean |
| Sector |
Projected Board DateApril 16, 1998
Company NameBanco Cuscatlán, S.A. (“Cuscatlán”)
Technical Partner and/or Major Shareholders
Cuscatlán’s ownership is spread out among 2,449 shareholders, of whom 502 belong to 10 business groups.
Project Cost Including proposed IFC investment
A US$15.0 million IFC line of credit
Location of project and Description of site
Cuscatlán, the Borrower, is headquartered in San Salvador, but the sub-projects financed through the project are expected to be throughout El Salvador and to a lesser extent in other Central American countries.
Description of Company and Purpose of Project
Cuscatlán, founded in 1972, is the second largest private bank in El Salvador with $1.3 billion in assets, and the largest in terms of equity with $98.0 million as of December 31, 1997.
The proposed project will allow Cuscatlán to provide term financial support to private Salvadoran and other Central American small and medium-sized enterprises (SMEs) mainly for their modernization, expansion, and financial restructuring needs. The project would also strengthen Cuscatlán’s term-lending capabilities since IFC would: (i) offer secondment opportunities to Cuscatlán’s project finance staff; (ii) help Cuscatlán strengthen its sub-project analysis system and review selected sub-projects for adequacy of analysis and structuring; (iii) assist Cuscatlán in establishing environmental risk management capabilities; and iv) diversify funding sources.
Environmental Category and Issues
This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. Banco Cuscatlán will be required to carry out an environmental review of eligible subborrowers’ environmental performance and each subproject’s compliance with the Government of El Salvador’s environmental, health and safety requirements as well as applicable World Bank policies and guidelines. In addition, IFC will assess Cuscatlán’s capability to carry out environmental reviews.
| Date SPI sent to PIC | March 9, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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