Quito, Ecuador, December 5, 2018
—IFC, a member of the World Bank Group, approved a USD 80 million credit facility to Produbanco, part of Promerica International Financial Group, to increase the bank’s lending to climate-smart projects and to bolster its lending to small and medium-sized enterprises (SMEs).
This credit facility places Produbanco at the forefront of Ecuador’s nascent climate finance market, significantly increasing its capacity to support climate-smart projects. Produbanco’s sustainability strategy is built upon the principles of the 2030 Agenda and it includes funding for energy efficiency projects and upgrades to manufacturing equipment to improve infrastructure and promote industrial development.
“Sustainability is part of our institutional strategy. We are committed to delivering financial solutions to our clients and supporting future generations while guaranteeing a balance between economic growth, care for the environment and social wellbeing. At Produbanco, our integral approach to Corporate Social Responsibility is based on the precautionary principle. It guides all of our actions and enables us to promote sustainable development in Ecuador”, stated Ricardo Cuesta, Produbanco’s CEO.
This financing will also boost Produbanco’s SME loans. Financing for SMEs remains very limited in Ecuador while they are are essential to the country’s economic diversification. They account for about 34 percent of Ecuador’s formal employment and 25 percent of gross domestic product. As a result, Produbanco’s increased lending in this segment will help fuel job creation in the country.
IFC will provide advisory services to the bank in order to identify potential climate smart transactions in its portfolio and develop eligibility guidelines for climate smart projects. Produbanco’s expanded climate finance operations will contribute in the reduction of Ecuador’s CO2 emissions under the COP21 international agreement to combat climate change.
“We are committed to helping Ecuador develop its climate finance market and to help SMEs obtain the necessary financing so they can become an engine of economic growth and job creation,” said Juan Gonzalo Flores, IFC’s acting manager for the Andean region. “This investment fills important gaps, particularly for small companies that need financing to grow as well as for the financial sector, so it can support the climate-smart projects in the country,” he said.
IFC’s strategy in Ecuador is centered on promoting financial inclusion and climate finance. IFC also focuses on providing financing and technical assistance to businesses that have a strong positive impact on the export sector. IFC looks for projects that tackle climate change, create jobs and benefit underserved populations. IFC’s support to Ecuador began when the country became a member of the institution in 1956, and since that time, it has invested some USD 750 million in Ecuador.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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About Produbanco – Grupo Promerica
Produbanco is a bank with ample experience in the Ecuadorian market. It offers a broad portfolio of products and services to serve the corporate, middle market, SME and retail clients efficiently. Produbanco´s diverse staff is committed to upholding the highest levels of customer service. In November 2018, Produbanco celebrates 40 years of successfully contributing to the growth of Ecuador´s companies and families, a major milestone. Produbanco has received local and international awards that recognize its prestige, service quality and innovation capabilities. Ekos magazine develops the Ekos Customer Satisfaction Index and highlighted Produbanco with the first place in customer service in Ecuador (2016-2017); Latin Finance magazine named Produbanco the ‘Best Bank in Ecuador’ (2017); The Banker magazine, a publication of Financial Times group granted Produbanco the ‘Bank of the Year’ award for the tenth time (2002, 2007, 2009-2015, 2017); the British magazine International Banker awarded Produbanco the distinction as ‘Best Commercial Bank Ecuador‘ and Best Bank in Innovation of Retail Banking Ecuador (2017-2018). Produbanco is worthy of the AAA- credit risk rating by BankWatch Ratings and Pacific Credito Ratings (PCR).
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