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El Salvador: supporting SMEs
Project
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Signature date
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Location
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Salvador
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Financing tool
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Financing amount (Euro)
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25873221
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Financing details
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USD 30m loan
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Customer
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Banco Cuscatlán De El Salvador, S.A.
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Type of customer
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Financial institution
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Country of headquarters
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Salvador
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Project number
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PSV1011
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Environmental and social ranking
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IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
By allocating a loan to the Salvadoran Banco Cuscatlan, Proparco is supporting SMEs and the economic role of women in the country.
Client presentation
Banco Cuscatlán is the second largest bank in El Salvador (out of a total of 13 banks), with assets totaling USD 3.6bn (about 18% of the banking system), a loan portfolio of USD 2.3bn and USD 2.8bn of deposits as at March 2021. The counterparty is the leader on the mortgage market and has a strong franchise in the private client segment.
Project description
This USD 30m facility aims to increase the bank’s capacity to finance local SMEs. The bank has also accepted to allocate, as far as possible, part of the overall facility to projects that meet the criteria of the 2X Challenge. This action will strengthen the operation’s impact by increasing access to credit for SMEs managed or owned by women.
Project impact
Some 9,000 jobs will be supported in El Salvador’s economy and 350 SMEs will be financed through Proparco’s loan. This will bolster growth and reduce poverty.