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Green bonds to finance projects with climate co-benefits

Project

Financial services
Signature date
Location
Ecuador
Financing tool
Loan
Financing amount (Euro)
43630017
Financing details
USD 45m loan
Customer
Banco Guayaquil S.A.
Type of customer
Financial institution
Country of headquarters
Ecuador
Project number
PEC1028
Environmental and social ranking
IF-A
Climate co-benefits
Project with climate co-benefits
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This information is given at the time of signature, without prejudice to any developments in the operation/project.

In Ecuador, Proparco and Banco Guayaquil have joined forces to finance green projects in the country.

Client presentation

Banco Guayaquil is Ecuador’s second largest private bank and has been a partner of Proparco since 2019. The bank offers a wide range of products, with a portfolio evenly distributed among the segments of companies (56%, with 6% SMEs), consumption (30%), microenterprises (8%) and mortgage loans (6%). Banco Guayaquil operates nationwide and its market share has been growing continuously for five years.

Project description

Following a first Social Bond issuance in 2020, Proparco has just made a USD 45m subscription to the first ever green bonds issued by Banco Guayaquil. For this subscription, the bank has developed a Green Bond Framework aligned with the Green Bond Principles (GBP) of the International Capital Market Association (ICMA). 100% of the funds from this issuance will finance eligible green assets. 

Project impact

The expected impacts of this project are: 

  • About 52,000 jobs supported in the bank and its underlyings over the next 5 years
  • A contribution to climate change mitigation as it is estimated that 67% of the financing will be channeled towards projects with climate co-benefits, such as buildings with EDGE certifications. 

This project will contribute to the achievement of SDG 13 (“Climate action”) and SDG 8 (“Decent work and economic growth”).

Banco Guayaquil S.A.