Banco Azul de El Salvador
BIO has given USD 12,543 of Technical Assistance to Banco Azul de El Salvador, a commercial bank in El Salvador.
Amount
$ 12,543.00
Type of investment
Subsidy
Beneficiary locations
Investment field
Financial Institutions
Activity
Commercial Banking
Banco Azul (BA) is one of 12 commercial banks in El Salvador, founded in 2015 with the mission to create a Salvadorian-owned bank, after the last bank with Salvadorian shareholding had been acquired by Colombian investors. The bank offers loans to corporate, SME and retail clients, takes deposits and is regulated by the Salvadoran superintendence (SSF). It forms part of the bigger group “Inversiones Financieras Grupo Azul” which holds the bank, two insurance businesses, and a brokering business. In 2022, Grupo Azul finalized the acquisition of Banco G&T Continental and integrated it into Banco Azul to strengthen the bank’s position in the market (8th biggest).
The bank has approached BIO for a USD 15M Senior loan to finance their SME loan portfolio, including a small part of green loans. Banco Azul’s loan portfolio is mainly backed by deposits, but they have also been able to secure debt financing from international lenders such as DEG, Cofides, Symbiotics.
The bank’s strategic target for the coming years is to grow its SME client portfolio and to provide the full range of services required by their clients.
The BIO’s USD 15M loan has been fundamental to advancing their strategic objectives. This support has significantly contributed to the development of their internal capabilities, the strengthening of their responsible financial services offering, and the positioning of the Bank as an institution committed to transparency, equity, and sustainability.
Providing technical assistance to its investees is thus an integral part of the strategy of the fund.
Technical assistance
The main objective of this project is to evaluate the degree of implementation of Customer Protection Standards at Banco Azul, in accordance with the international standards developed by CERISE/SPTF, based on global best practices. This evaluation aims to obtain a rapid and comprehensive diagnosis that identifies gaps and opportunities for improvement, culminating in a detailed report and a proposal of concrete actions, and ultimately receiving the certification.
The main objectives are :
- To analyse and evaluate the level of implementation of the Customer Protection Standards.
- To identify areas for improvement that will allow the bank to fully comply with these standards.
- To develop an action plan that facilitates overcoming the identified gaps in the short and medium term.
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