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
“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
“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.
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,
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).