Cali, Colombia, October 29th, 2024. The International Finance Corporation (IFC), a member of the World Bank Group, has announced an investment of up to US$100 million in Produbanco to support and promote sustainable development in Ecuador.
Produbanco will use the loan proceeds to provide financing for projects that conserve, restore, and protect biodiversity, climate-smart projects, and to increase access to finance to women-owned SMEs. This is the first loan in Ecuador with a component specifically earmarked at supporting biodiversity finance in the country.
Ecuador is known for its rich biodiversity, but deforestation and other factors have led to a loss of forest cover. Investments to protect biodiversity and promote sustainable agricultural practices are necessary to preserve Ecuador's natural resources and support the agricultural sector, which is a significant contributor to the country's exports.
Furthermore, Ecuador is vulnerable to climate change and natural hazards, with coastal regions particularly at risk. The country ranks 118th out of 187 countries on the University of Notre Dame's Global Adaptation Initiative index for climate vulnerability. Investing in climate resilience initiatives and promoting access to finance for such projects is essential to address these challenges.
After a strong recovery from the 2020 fiscal crisis, Ecuador's economy has experienced a slowdown due to various factors. To stimulate economic growth and create jobs, it is crucial to expand access to finance for SMEs, which currently face a significant financing gap in Ecuador.
“Aligned with our purpose and values, Produbanco is committed to supporting its clients, particularly small and medium-sized enterprises, in integrating project execution with biodiversity conservation and habitat restoration. We are proud to be the first bank in the Ecuadorian market to introduce a biodiversity-focused approach in collaboration with the IFC,” said Rubén Eguiguren, Produbanco’s CEO.
"Produbanco has demonstrated a strong commitment to biodiversity and sustainable financing. Through previous engagements with IFC, the bank has shown its dedication to expanding access to SMEs, women-owned SMEs, climate and the blue economy." said Alfonso García Mora, IFC’s vice president for Europe, Latin America and the Caribbean. "This investment marks the extension of Produbanco’s sustainability strategy into specifically supporting projects that prevent biodiversity loss and aligns with our commitment to supporting inclusive and sustainable growth. By investing in Produbanco, we aim to stimulate economic activity, create jobs, and protect Ecuador's natural resources."
IFC's involvement is expected to attract additional institutional investors to the project, mobilizing resources for sustainable development. IFC will also provide advisory services to enhance Produbanco's understanding of biodiversity finance and climate risks.
The announcement of the investment was made within the framework of the COP16 activities held in Cali, Colombia, October 21 through November 1.
About Produbanco
Produbanco is part of Grupo Promerica, with a presence in nine countries across Central and South America. Produbanco’s mission is to create value with a sustainable focus, making a lasting impact on people’s lives through its various business segments: corporate, business, wealth management, institutional, SME, and personal banking. With a successful track record spanning 45 years, Produbanco has received numerous local and international awards that confirm its prestige. Among the most notable are: First place in the PXI Ecuador 2024 ranking by the Praxis Xperience Index. Best Financial Institution for Women-Led SMEs (2023), awarded by the SME Finance Forum. Best Bank Ecuador (2017 to 2024), and the Sustainable Finance Awards in the Country and Territory Awards category for Latin America for Ecuador (2024), both granted by Global Finance. Bank of the Year Ecuador, awarded for the fourteenth time (2002, 2007, 2009 to 2015, 2017, 2019, 2020, 2021, 2022). Best Innovation in Retail Banking Ecuador (2017 to 2023), awarded by The Banker magazine, among others. For more information, please visit https://www.produbanco.com.ec
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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