IFC provides US$50mn loan to Produbanco to support economic recovery in Ecuador

PRESS RELEASE from IFC
9 December 2020

Quito, Ecuador, December 9^th 2020. IFC, a member of the World Bank Group, has provided a senior loan of $50 million to Banco de la Producción S.A. Produbanco, a large local bank member of Promerica Financial Corporation, one of Central America´s largest financial conglomerates.

The loan will allow the bank to extend new credit to companies and vulnerable segments of the population whose cash flows have been disrupted by the COVID-19 pandemic. The investment aims to help businesses with disrupted cash flows to continue operations, especially micro, small, and medium enterprises (MSMEs) and women-owned MSMEs.

The funding is part of IFC's $8 billion global COVID-19 fast-track financing facility, aimed at helping companies stay afloat during the ongoing pandemic. This investment comes under the Working Capital Solutions (WCS) program of the COVID-19 response envelope, which provides $2 billion globally to emerging-market banks, enabling them to support struggling firms and stem job losses.

"IFC's loan facility is timely and crucial. In line with the banking sector in Ecuador, IFC's investment will help us offer payment relief to clients, while offering new loans to help them sustain operations, thereby retaining jobs and contributing to the economic recovery process" affirmed Rubén Eguiguren, VP of Corporate Banking at Produbanco.

IFC's loan to Produbanco will also sustain the resilience of trade finance markets as it is expected to support the bank's export clients.

Elizabeth Martínez de Marcano, IFC Manager for the Andean Region, said: "A strong financial sector will be key to Ecuador's economic recovery. Our past experiences have taught us that smaller businesses are especially vulnerable to global crises. Keeping them solvent is vital to saving jobs and limiting the economic damage. Further, IFC's countercyclical financing will inspire investor confidence, protect jobs and businesses, accelerating the nation's post pandemic recovery."

IFC continues to support private sector development in Ecuador, with a committed exposure of over US$340 million in the country as of October 2020.

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 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.

About Produbanco - Grupo Promerica

Produbanco is a bank with extensive experience in the Ecuadorian market.  It offers a wide range of products and services to efficiently serve the corporate, middle market, SME and retail segments.  Produbanco`s multidisciplinary team is committed to best in class customer service.  Throughout its 42 years of successful performance, Produbanco has earned local and international recognition.  Awards include Most Respected Financial Institution (2018) conferred by the Ecuadorian Business Committee; Ekos Oro Gold Award – First Place in Customer Service in the Bank Category for three consecutive years (2017-2019); Best Bank Ecuador (2017, 2018,2019, 2020), awarded by Global Finance; Bank of the Year Ecuador for the tenth year (2002, 2007, 2009-2015, 2017, 2019 and 2020), awarded by The Banker magazine; Best Innovation in Retail Banking Ecuador (2017, 2018, 2019, 2020) and Customer Service Provider of the Year, South America (2019, 2020), by International Banker magazine; Bank of the Year Ecuador (2017-2019), by The European magazine and Best Bank Governance Ecuador (2017, 2018, 2019, 2020), by Capital Finance International. Additionally, Produbanco has received local risk ratings of AAA by PCR Pacific Credit Rating and AAA- by BankWatch Ratings.