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Banco Ficohsa: A credit line to finance renewable energy projects in Honduras
Project
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Signature date
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Location
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Honduras
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Financing tool
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Financing amount (Euro)
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30570355.49
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Financing details
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USD 35m loan
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Customer
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BANCO FINANCIERA COMERCIAL HONDURENA SA
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Type of customer
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Financial institution
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Country of headquarters
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Honduras
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Project number
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PHN1008
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Environmental and social ranking
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IF-A
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Following a first loan allocated to the bank in 2012, PROPARCO is renewing its support to the largest bank in Honduras. This will allow Banco Ficohsa to increase its portfolio of loans allocated to local companies which develop green projects in Honduras.
Client presentation
Banco Ficohsa has been the leader in the Honduran banking sector since 2014. The bank initially focused on corporate financing and has successfully developed its retail banking and SME financing activity. The bank’s current strategy is based on three pillars: maintaining its position in the corporate segment, developing the SME portfolio and increasing the consumer credit activity.
Project description
The project involves a USD 35m senior credit line earmarked to support renewable energy financing in Honduras.
It is the second financing allocated to Banco Ficohsa by Proparco. The first USD 20m loan signed in 2012 was already earmarked for renewable energy development and energy efficiency.
Project impact
This project should firstly contribute to reducing the dependence of Honduras on fossil fuels (56% of the mix) and, secondly, the country’s CO2 emissions (29.5 Mt, if emissions related to forests and changes in land use are not included; source WRI, 2017 inventory).
On the economic level, the project will support the growth of local companies developing green projects.
On the social level, it will contribute to providing access to electricity to people who do not benefit from it yet.
Finally, in terms of employment, the project will support over 3,200 jobs in Honduras.