Banco Popular

Equity : May 2010

Banco Popular is a Bank specialized in micro and small businesses in Honduras.

Amount

€ 1,364,000.00

Type of investment

Equity

Development impacts

Beneficiary locations

Latin America and Caribbean: Honduras

Investment field

Financial Institutions

Activity

Microfinance Institution

Organisation

Banco Popular

Website

https://bancopopular.hn/

Domicile

Honduras

In 2010, BIO participated together with IFC, ACCION INV, FMO and BCIE in a buyout and recapitalization of the bank, designed to:

facilitate the turnaround of the bank by creating a coherent and cohesive shareholder and Board structure.
meet new capital requirements.
reduce the bank’s exposure to a risky second floor portfolio.
support the largest and pioneer microfinance bank in Honduras.

Local economic growth
The core business is microfinance and SME loans (both together account for 42% of the portfolio) and the institutional clients business (45% of the portfolio).
Financial inclusion
Popular’s principal products are: (i) Credit products: working capital loans, home improvements, fixed assets loans, seasonal loans, credit cards for both micro and SME clients, and remittances; and (ii) Savings and deposits specially targeted to micro clients.