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Banpro 2014: A loan to support agricultural companies in Nicaragua
Project
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Signature date
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Location
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Nicaragua
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Financing tool
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Financing amount (Euro)
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16473107.65
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Financing details
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Loan of USD 20m
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Customer
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BANCO DE LA PRODUCCION S.A
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Type of customer
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Financial institution
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Project number
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PNI1003
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Environmental and social ranking
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IF-B
Banpro is Nicaragua’s leading bank and mainly targets agricultural and agro-industrial companies. Proparco’s financing will support midcaps operating throughout the value chain.
Client presentation
Banco de Producción (Banpro) is the leader in Nicaragua’s banking sector. It is historically the main subsidiary of the regional financial group Promerica Financial Corporation (PFC), and the second one in terms of total assets. . The bank mainly focuses on corporate finance (75% of its portfolio). It is the main funder of the agricultural sector, with 40% of market share in this segment.
Project description
Proparco’s credit line will be earmarked to finance medium-sized agricultural and agro-industrial companies that operate throughout the value chain (primary production, processing and marketing). It will allow Banpro to meet increasing needs for medium and long-term financing in the agricultural and agro-industrial sectors in Nicaragua.
Project impact
This operation will contribute to supporting the development of agriculture and the agro-industry. They are key economic sectors which employ 30% of the labor force. It will support the development of the agricultural supply chain and increase incomes for communities who are reliant on agriculture and the agro-industry.