FMO, the Dutch entrepreneurial development bank, signed a USD 116mn syndicated facility to its existing client Banco Pichincha to finance both green projects and women-owned SMEs in Ecuador. FMO has acted as lead arranger and lender for this transaction, providing USD 20mn in financing alongside six other partners: Blue Orchard Finance Ltd, eco.business Fund, GCPF, ILX, responsAbility and Symbiotics Investments.
Banco Pichincha is the largest bank in Ecuador, focused on providing personal and corporate banking, together with microfinance services. The universal bank is seen as a market leader within the country, reaching roughly 4.6 million Ecuadorians and serving over 70,000 SMEs. Within the banking sector, it has the most sizable microfinance portfolio and offers alternative distribution products such as village banking to reach non-banking users located in shops or kiosks, thereby increasing access to finance for the unbanked. In addition to its strong financial inclusion focus, Banco Pichincha has a strong green and gender strategy, demonstrated through both financial and non-financial products.
FMO arranged this facility to provide Banco Pichincha with the financial support necessary to provide financing to women-owned SMEs (35%) and green clients and projects (65%). This transaction clearly demonstrates FMO’s additionality, qualifying for several SDGs, including SDG 10 (Reduced Inequalities), SDG 13 (Climate Action), SDG 8 (Decent Work and Economic Growth), and SDG 5 (Gender Equality).
Huib-Jan de Ruijter, Co-Chief Investment Officer at FMO said: “We are thrilled to support our existing client Banco Pichincha once again by arranging and participating in this high-impact syndicated transaction alongside our partners. Banco Pichincha’s overall strategy aligns strongly with our mandate and strategic objectives, and we are proud to see that their strong commitment to both financial inclusion and sustainability through their substantial green and gender portfolios, has been recognized externally, as well as through their strong financial performance. We look forward to jointly contributing to the further sustainable development of Ecuador.”
For more information on FMO visit www.fmo.nl