Promoting financial inclusion in Paraguay

Banco Sudameris S.A.E.C.A. is a medium-sized universal bank (4th largest Paraguayan bank in terms of loans and 5th for assets). It plays a major and increasing role in financial intermediation in Paraguay. In November 2022, it launched a merger-takeover of Banco Regional, a merger which should make it the leader in Paraguay.

This new operation for USD 110m in the Friendship Facility format is conducted by DEG (USD 40m) and is followed by Proparco (USD 30m) and FMO (USD 40m).

This project is fully in line with Proparco’s mandate, as it contributes to the fight against climate change, given the environmental benefits of the underlying projects eligible for the use of the funds. It is also helping to support and develop the inclusion of women and strengthen Proparco’s presence in a country where SMEs have much less access to the banking system than companies in the region.

The expected impacts of this project are: 

• Support for 8,282 jobs in the bank and its client companies over the next 5 years. In the bank, some 450 jobs are supported, including 38% for women
•  A mobilization of private finance estimated at over EUR 38m (ratio of 1.45 based on OECD methodology)
• Reduction of gender equality, as 50% of the project qualifies for the “2X Challenge” initiative.

This project will contribute to the achievement of SDG 5 (“Gender equality”), SDG 8 (“Decent work and economic growth”) and SDG 13 (“Climate action”).