Quito, Ecuador. March 29, 2023. The International Finance Corporation (IFC), a member of the World Bank Group, announced the granting of a sustainable loan of US$160 million dollars to Produbanco, one of the leading banks in Ecuador, to promote the blue economy and boost access to financing for Small and Medium Enterprises (SMEs), especially those owned by women, and other sustainable projects.
The loan has a senior component of US$130 million and a subordinated component of US$30 million, of which US$10 million comes from Blue Orchard. The subordinated funding contributes to strengthen the technical / Produbanco patrimony. Additionally, IFC recently mobilized a parallel senior loan from the Japan International Cooperation Agency (JICA) for US$50 million, bringing the consolidated amount of financing to US$210 million.
Elizabeth Martínez Marcano, IFC's manager for the Andean Region, said: "Blue finance can contribute to address the most pressing challenges to boost development. However, it is still in its infancy in Latin America and the Caribbean. IFC supports innovative financial instruments that allocate resources for water management, wastewater management, reduction of plastic pollution in the oceans, and restoration of the marine ecosystem, among others. This loan also includes advisory services in aquaculture and water treatment."
"Produbanco is a pioneer in promoting sustainable industrial development. We issued the first bond with a green and social focus in Ecuador, and we add value to our clients through consultancies with specialized providers to help them reduce their environmental impact. We are part of several global and local initiatives focused on promoting a green financial system and conserving the planet. We are also an important partner for the development of the MSMEs sector, through sustainable financial products", said Rubén Eguiguren, Executive President of Produbanco.
Finally, IFC and Produbanco have signed a technical cooperation agreement focused on blue finance that aims to support the bank in identifying blue financing opportunities and growing the portfolio. The advice that IFC will provide to the bank will focus particularly on the aquaculture and water treatment subsectors.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About Produbanco
Produbanco is a Bank with extensive experience, with a wide portfolio of products and services to efficiently serve the corporate, business, SME and personal sectors. It has a multidisciplinary team of collaborators, committed to the quality of service. Throughout 44 years of successful history, Produbanco has been awarded various local and international recognitions that confirm its prestige, including: Most Respected Financial Institution in Ecuador (2018), awarded by the Ecuadorian Business Committee; Ekos de Oro Award – First Place Quality of Service, Banking Category for the fifth consecutive year (2017-2021), designated by the Ekos Customer Satisfaction Index; Power Digital Brands (2021), first place in the banks category in brand management on Facebook and Instagram, Power Digital Brands (2022), first place in the banks category in brand management on Facebook awarded by Ekos Magazine; Best Bank Ecuador (2017 - 2022), Best Digital Bank (2017 - 2021), The Innovators (2021), Outstanding Leadership in Resource Management (2021), Outstanding Leadership in Green Loans (2021), Outstanding Crisis Leadership during the COVID-19 (2020), Sustainable Finance: Outstanding Leadership in ESG-Related Loans in Latin America, Financial Leadership in Sustaining Communities in Latin America and Sustainable Finance Leadership in Ecuador (2022), Best Investment Bank (2022) all awarded by Global Finance; Bank of the Year Ecuador for the fourteenth time (2002, 2007, 2009 - 2015, 2017, 2019, 2020, 2021, 2022), awarded by The Banker magazine; Best Innovation in Retail Banking Ecuador (2017 - 2022), Customer Service Provider of the Year, South America (2019 - 2020) and Best Commercial Bank (2017) by International Banker magazine; Bank of the Year Ecuador (2017 - 2019), by The European magazine; and Best Bank Governance Ecuador (2017 - 2020), by Capital Finance International. Additionally, Produbanco has received the AAA risk rating from PCR Pacific Credit Rating.
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