Banco Popular
BIO has invested an additional USD 1.7 M in equity in Banco Popular, a Honduran microfinance institution, to reach 26.6% of company's shares.
Amount
€ 1,559,546.70
Type of investment
Equity
Development impacts
- Local economic growth
- Financial inclusion
Beneficiary locations
Investment field
Financial Institutions
Activity
Banco Popular is the leading bank specialised in microfinance in Honduras. It offers loans, deposits, money transfers and other financial services to privately-owned micro and small enterprises and their owners, as well as the general lower income strata of the Honduran population.
It started its activities in 2004 as a Saving Association and received the commercial banking licence from the Honduran Banking Commission in 2008.
BIO has been a shareholder of Banco Popular since 2008 when it invested together with several other DFI's with the aim of assisting the institution in its transformation to a commercial bank specialised in microfinance. BIO now makes its fourth follow-up investment amidst a reshuffling of the bank’s shareholding, with a new consortium of impact investors and the implementation of a Value Creation Plan focused on Digitalisation, E&S aspects, Rural Expansion and Corporate Governance.
Development impacts
-
Local economic growth
91% of portfolio are loans provided to microenterprises and SMEs
Additional services such as deposits and financial trainings are also offered to clients.
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Financial inclusion
Popular is the main bank in Honduras specialised in microfinance. The average micro loan is USD 860 and the average SME loan USD 17,000.
Popular has 28 branches throughout the country and is expanding in rural areas with less financial institutions present. It uses more than 5,000 alternative cash points for payment solutions.
The company also offers deposits, insurance and medical assistance products adapted to the lower strata of the population
E&S Impact
Banco Popular will
- maintain the Client Protection certification & perform regular social assessments,
- define and monitor social goals, and ensure board, management and employee commitment to these goals,
- draft a dedicated E&S Policy and align with the EDFI exclusion list, and
- set up a grievance mechanism for workers to raise workplace complaints.
Current situation
Banco Popular has no dedicated social or environmental policy or environmental and social management in place. A list of excluded activities, however, is formalised in the credit policy.
Risk Category: C
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Subsidy
