Banco Popular

Subsidy : May 2025

BIO has granted USD 116,865.00 of technical assistance to Banco Popular, a Honduran financial institution specialised in micro and small businesses.

Amount

€ 116,865.00

Type of investment

Subsidy

Beneficiary locations

Latin America and Caribbean: Honduras

Activity

KK.64.191 Microfinance institution

Organisation

Banco Popular

Website

https://bancopopular.hn/

Domicile

Honduras

More investments in

Banco Popular

Equity € 1,559,546.70 (2022)
Subsidy € 10,223.00 (2022-2023)
Subsidy € 12,508.00 (2021-2022)
Debt € 4,494,000.00 (2019-2023)
Equity € 121,408.00 (2017)
Equity € 200,374.59 (2015)
Equity € 1,364,000.00 (2010)
Equity € 1,357,000.00 (2007)

Banco Popular is a regulated Honduran MFI that focuses on alleviating poverty by offering a broad range of products to the micro, SME, housing (improvement), consumer and agricultural segments. These products include working capital loans, capex loans, unsecured loans to communities and deposits/ savings accounts. On the liability side, the Bank captures savings and deposits. Banco Popular’s mission is to “satisfy the needs popular economics sector in Honduras, promoting social development and responsible use of the natural resources of the country”.

To date, BIO invested a total amount of EUR 5.3m in equity investment in Banco Popular and also provided a 4-yrs senior loan (USD 5m) which was fully repaid in 2023. In addition, BIO provided TA subsidies to support the institution in several areas. A first TA project was implemented in 2011, as the management and shareholder structure of the Bank evolved, which aimed at strengthening the Bank’s credit base as well as its deposit base, risk management and institutional image. In 2021, a second TA project carried our a diagnosis of the Bank’s operational processes and ICT, to allow the preparation of a strategic ICT plan for the next five years of the Bank’s operations to accompany its growth. In 2022, BIO supported the implementation of a SPI4 audit and social rating of the FI.

This project will contribute to the BDGs “Private Sector Consolidation/Innovation and Financial Inclusion”.

Technical assistance

The Technical Assistance aims at supporting the integral risks management and the improvement of the institution’s portfolio quality through a complete diagnostic and a 6-month support to the implementation of an action plan.