IDB Invest and Banco Promerica RD join forces to widen financing for SMEs and projects in the Dominican Republic
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- IDB Invest has approved a package of up to 80 million dollars for Banco Promerica RD to widen credit for SMEs and green projects in the Dominican Republic.
SANTO DOMINGO – IDB Invest has approved a financing package of up to US$80 million for Banco Múltiple Promerica de la República Dominicana, S.A. (“Promerica RD”) with the aim of widening access to credit for small and medium-sized enterprises (SMEs) and for green sustainability projects. The operation seeks to drive economic growth by supporting underserved segments and promoting sustainable investment.
The financing provided by IDB Invest amounts to US$35 million, including a senior loan of US$20 million, a subordinated loan of US$5 million and a further loan of US$10 million under a blended finance scheme, funded by the Finland-LAC Climate Blended Finance Fund. A further US$45 million will be mobilised from external investors, including the Dutch Entrepreneurial Development Bank (FMO), the eco.business fund managed by Finance in Motion, and Enabling Qapital, widening the impact and reach of the operation.
Alongside the financial support, IDB Invest will provide advisory services to Promerica RD and to Grupo Promerica to strengthen their climate risk management capabilities. This includes a gap analysis aligned with standards S1 and S2 of the International Sustainability Standards Board (ISSB), the development of tools to assess climate-related economic losses, and the integration of climate risk into the bank’s strategy and operations.
The blended finance loan also includes performance-based incentives for growth of the green portfolio and for meeting disclosure milestones under ISSB S1 and S2.
This operation exemplifies IDB Invest’s commitment to mobilising resources towards high-impact sectors and underserved populations. It contributes to the IDB Group’s strategic priorities on the development of micro, small and medium-sized enterprises, and supports the Dominican Republic’s national strategies on financial health and environmental sustainability.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so they can achieve financial results and maximise economic, social and environmental development in the region. With a portfolio of US$22 billion in assets under management and more than 400 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services that meet its clients’ needs across a range of sectors. Visit our website: www.idbinvest.org/en.
About Promerica RD
Based in Santo Domingo, Banco Promerica is a multiple bank with 25 years of local presence, with an emphasis on serving personal clients, small and medium-sized enterprises, corporate and institutional clients, and on the payment methods business. Banco Promerica is a member of Grupo Promerica (through the holding company Promerica Financial Corporation), which operates in 9 countries across Central America, Ecuador, the Cayman Islands and the Dominican Republic.
About the Finland–Latin America and the Caribbean Climate Blended Finance Fund
The Finland–LAC Climate Blended Finance Fund is a trust fund backed by the government of Finland, whose aim is to catalyse greater private investment in climate change adaptation and mitigation in Latin America and the Caribbean, with an emphasis on poor and vulnerable countries and communities, gender equality, diversity, inclusion and biodiversity.