PROPARCO is contributing to strengthening the capital structure of Banpro, Nicaragua’s leading bank, which will allow it to continue its productive investments for SMEs in the country – and, more generally, the private sector.
Banco de la Produccion (Banpro) is the leading bank in Nicaragua’s market and the second largest institution in terms of assets of the regional financial group Promerica Financial Corporation (PFC), which operates in nine Latin American countries. Banpro has been a client of PROPARCO since 2013.
The tier 2 credit line to Banco de la Produccion aims to strengthen the bank’s capital structure and support employment and productive investment in one of the poorest and most unbanked countries in Latin America. PROPARCO has partnered with the OPEC Fund for International Development (OFID), which acts as a catalyst. Each institution is contributing USD 10m, for a total financing of USD 20m.
The project will have a number of socioeconomic impacts. It will support employment and training for local populations. It will contribute to the development of the private sector, particularly SMEs, which will become the institution’s main business sector over the next five years. Finally, the bank’s extensive network will allow it to promote financial inclusion for the poorest populations living in the country’s most underserved regions (Atlantic coast).