Banco Popular

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BIO invested USD 3.7 million in order to assist the savings and loans association Popular in its transformation to a commercial bank, BanCovelo (today Banco Popular), as well as to expand its micro lending operations. This investment is BIO’s first direct intervention in Honduras.

BIO later participated in a capital increase in 2015.

Banco Popular was founded in early 2007 as part of the fusion of the financial institutions of Grupo Microfinanciero Covelo (Fundación Covelo and Popular Asociación de Ahorro y Préstamo AAP). The mission of Banco Popular is to be an efficient, profitable and professional bank that offers high quality financial products and services to urban and rural markets, with a strong sense of social responsibility and a firm commitment to improving clients’ quality of life.

The developmental impact of BIO’s investment in Popular is expected to be very high in terms of its economic support for productive micro enterprises, its stimulus for employment generation, and the contribution to the deepening of the financial sector. Popular’s capital increase and transformation to a bank is expected to boost Popular’s credit and other financial services support for productive micro, small and medium enterprises.

Other developmental aspects are:

* Expansion of access to financial services in Honduras;

* Institution-building by helping Popular to transform from a non-bank financial institution into a commercial bank;

* Strengthening a microfinance institution by providing funding in the form of capital.

Website: www.bancopopular.hon

BIO extended an USD 250.000 technical assistance subsidy to Banco Popular in 2011.

  • Investment amount (€):

    € 3.19 M

    Microfinance Institution

  • Contract signature :

    2007; 2010; 2015; 2017

  • Nature of intervention :

    Equity

  • Development impacts :

    • 1 — Local economic growth
    • 2 — Financial inclusion

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