Financiera Finexpar
BIO has granted a USD 10 M loan to Financiera Finexpar, a financial institution in Paraguay
Amount
$ 10,000,000.00
Type of investment
Debt
Development impacts
- Local economic growth
- Promotion of ESG best practices
Beneficiary locations
Investment field
Financial Institutions
Activity
Finexpar is the largest Financial Institution (Financiera) in Paraguay with a solid growth in the past years and with a focus on providing financing to SMEs along the country. The institution has requested approval from the Central Bank (BCP) to convert into a full commercial bank with the purpose to be able to offer all banking products that as a Financiera it is not allowed to do.
The main economic activities in the portfolio are the agricultural crops production (18.8%), followed by commercial activities (12.6%), animal breeding (10.3%), retail activities (9.2%) and manufacturing industries (7.1%). Finexpar has 16 branches, 4 of them located in the Capital Region, while the rest are located in the Centre and South regions of the country. Finexpar’s medium term strategy is to become a specialized SME bank, with a focus on the customer support, providing them efficient services and products according to their needs.
Development impacts
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Local economic growth
The project consists of supporting a financial institution in increasing access to financial products and services for SMEs in the productive sector in Paraguay, with the aim to convert to a commercial bank which will allow it to expand its offering and its SME portfolio (from 48% to 56% of its total portfolio). The bank has a focus on the agricultural sector, which plays a crucial role in the country's economic growth and job creation.
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Promotion of ESG best practices
This institution has taken the initiative to implement an ESMS into its operations, as well join the banking initiative to promote better practices within the financial sector and which has a great openness to improve its E&S standards. BIO will have an important role in improving the client's ESMS.
E&S Impact
Finexpar has agreed to:
- Upgrade their current Environmental and Social Management System (ESMS) with Technical Assistance support
- Improve their E&S capacity with additional training
- Upgrade their current HR policies and practices according to IFC Standards
Situation at the time of investment
- Finexpar has an E&S policy and an ESMS in place, in line with the Paraguay Central Bank guidelines and the work from the Mesa de Finanzas Sostenibles.
- Finexpar has a portfolio focused on big SMEs with less than 15% on high risk sectors.
- Finexpar has an adequate E&S team and capacity
- Finexpar also has an HR policy in place, including anti-harassment and non-discriminatory policies
Risk Category: B
View more of our investments in this region
Financial Institutions
Banco para la Comercialización y la Producción SA
15,000,000.00
Paraguay
16/02/2024
Debt
