WASHINGTON, Jan. 17, 2019 /PRNewswire/ -- To address the challenge of small firms accessing credit to grow their business, IDB Invest, together with Blue like an Orange Sustainable Capital Fund, announced a loan of $20 million in Produbanco, part of Promerica International Financial Group, to increase the bank´s lending to small and medium enterprises (SMEs) in Ecuador.
The financing seeks to support several of the United Nations Sustainable Development Goals, including those related to decent work, reduction of inequalities, and access to affordable and clean energy.
With this 8-year subordinated loan, Produbanco will continue growing its SME financing business as well as its green lending program in Ecuador. The latter promotes environmentally friendly production, by financing energy efficiency projects or updating machinery with the aim of improving infrastructure and encouraging industry growth.
The financing is the first made by Blue like an Orange Sustainable Capital Fund together with IDB Invest, as part of a co-financing framework agreement between both institutions to catalyze private debt capital into companies in Latin America and the Caribbean.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients.
About Blue like an Orange Sustainable Capital
Blue like an Orange Sustainable Capital is a private investment firm which seeks to invest in opportunities in companies and projects that deliver both strong risk-adjusted returns and positive social impact in support of the UN's Sustainable Development Goals. Through its Latin America fund, Blue like an Orange Sustainable Capital focuses on sustainable infrastructure, agribusiness, healthcare, education and access to finance. Prominent supporters and advisors of Blue like an Orange Sustainable Capital include Ray Chambers (former Chairman of Wesray Capital), Henri de Castries (former Chairman and CEO of AXA and Chairman Europe and Special Advisor of General Atlantic), Emmanuel Faber (Chairman and CEO of Danone), Paul Polman (former CEO of Unilever) and Alejandro Santo Domingo (Chairman of the Santo Domingo Group), amongst others. Blue like an Orange Sustainable Capital manages its investments for sustainable development outcomes to foster inclusive and sustainable growth without trade-off with respect to market level rates of financial returns. Blue like an Orange Sustainable Capital's founding partners are Bertrand Badré, Amer Baig, Suprotik Basu, Rashad Kaldany and Emmanuelle Yannakis.
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 celebrated 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).
Ana Lucía Escudero, IDB Invest
Augustin Degroote, Blue like an Orange
SOURCE IDB Invest