IDB Invest approved a financing package up to 80 million dollars for Banco Múltiple Promerica of the Dominican Republic, with the objective of expanding access to credit for small and medium businesses (SMEs) and for green sustainability projects.
The credit amounts to 35 million dollars, including a senior loan of 20 million, a subordinated loan of five million and another loan of 10 million dollars, under a scheme of financing mixed, provided by the Climate Fund of Financing Mixed Finland-LAC.
In addition, they will mobilize 45 million of dollars external investorsincluding the Business Development Bank of the Netherlands (FMO), eco.business fund, managed by Finance in Motion and Enabling Qapital, expanding the impact and scope of the operation.
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In addition to financial support, IDB Invest will provide advisory services to Promerica and the group of the same name to strengthen their climate risk management capabilities. The operation seeks to boost economic growth, supporting underserved segments and promoting sustainable investments.
This includes a gap analysis aligned with the S1 and S2 standards of the International Sustainability Standards Board (ISSB), the development of tools to assess climate-related economic losses and the integration of the climate risk in the bank’s strategy and operations.
Likewise, the loan, under financing mixed, includes performance-based incentives for the growth of green portfolio and compliance with disclosure milestones according to ISSB S1 and S2.
This operation exemplifies the commitment of IDB Invest to mobilize resources towards high impact sectors and underserved populations and contributes to the strategic priorities of the IDB Group, MSME development, and supports the national strategies of the Dominican Republic in financial health and environmental sustainability, according to a press release.
About IDB Invest
IDB Investa member of the IDB Group, is a multilateral bank development committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector.
It finances sustainable companies and projects so that they achieve financial results and maximize economic, social and environmental development in the region. It has a portfolio of 22 billion dollars in assets under management and more than 400 clients in 25 countries.
About Promerica RD
Based in Santo Domingo, Promerica Bank has 25 years with a local presence, with emphasis on serving personal clients, small and medium-sized businesses, corporate and institutional clients, as well as the Payment Methods business.
The entity is a member of Promerica Group (through the holding company Promerica Financial Corporation), which operates in nine countries located in Central America, Ecuador, the Cayman Islands and the Dominican Republic.
