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Banco Pichincha, a partner of Proparco since 2012, is Ecuador’s leading bank and the leader on the microfinance market. This loan will allow the bank to develop the financing it allocates to the country’s SMEs and microfinance institutions.
Client presentation

Banco Pichincha has been a client of Proparco since 2012 and is Ecuador’s leading bank. It is a universal bank, with a 30% market share for deposits and loans, and is also the leader on the microfinance market. Banco Pichincha is a private bank, whose majority shareholder is Fidel Egas Grijalva, with over 90% of the share capital.

Project description

This operation, syndicated by FMO, has raised a USD 70m subordinated debt with a 7-year maturity for Banco Pichincha. This loan will strengthen the bank’s Tier 2 equity and support its growth in the SME and microfinance sectors. The project involves renewing the syndicated credit line allocated in 2014 (also cofinanced with FMO, Triodos and ResponsAbility). Proparco’s contribution is the only amount to have changed, from USD 10m to USD 20m. 

Project impact

On the economic level, the project will support activities to finance SMEs and microfinance institutions by strengthening their equity. In Ecuador, this type of long-term subordinated financing is only available from development organizations.
On the social level, Banco Pichincha currently employs over 5,100 people, 65% of whom are women. The growth of the activity related to PROPARCO’s capital contribution could lead to the creation of some 450 new positions in the bank.
The bank has also planned to continue to develop its environmental and social practices (updating of the SMART certification, introduction of E&S performance indicators…). 

Date of signature of the project
Financing tool
17 677 214 Euros
Amount of funding
USD 20m loan
Financing details