MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Arranges $22m Syndicated Loan to Banco Pichincha of Ecuador for Housing, Microfinance, SME Lending

The Inter-American Development Bank (IDB), a multilateral finance organization established in 1959 that is based in the United States and operates in Latin America and the Caribbean, extended a USD 22 million syndicated loan to Banco Pichincha, an Ecuadorian commercial bank. Established in 1906, Banco Pichincha currently offers financial services to micro-, small and medium-sized enterprises and plans to use the IDB loan to expand its housing and enterprise lending to Ecuador’s underserved communities. In 2008, Banco Pichincha reported return on equity (ROE) of 20.6 percent and return on assets (ROA) of 2.1 percent. At the end of 2009 the bank also reported total assets of USD 4.5 billion and USD 4 billion in deposits. It does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.

IDB’s syndication program, which to date has had 130 participants, pulls together private sector capital for ventures in Latin America and the Caribbean. IDB reported total assets of USD 84 billion and total equity of USD 21 billion as of December 2009 [1].

By Julie Moksim, Research Associate

About Inter-American Development Bank (IDB): The Inter-American Development Bank (IDB) is a US-based multilateral finance institution established in 1959 that operates in Latin America and the Caribbean. IDB works with governments, companies and non-governmental organizations (NGOs) to provide both loans and grants to support small and medium-sized enterprises (SMEs), health and education, among other sectors. IDB also provides technical assistance and research in these areas. Its Board of Executives is elected by forty-eight member countries, twenty-six of which are located in Latin America and the Caribbean. IDB reported total assets of USD 84 billion and total equity of USD 21 billion as of December 31, 2009.

About Banco Pichincha: Banco Pichincha is a full-service commercial bank that was established in Ecuador in 1906. It provides financial services to corporations; retailers; and micro-, small and medium-sized enterprises. In 2008 Banco Pichincha reported return on equity (ROE) of 20.6 percent and return on assets (ROA) of 2.1 percent. At the end of 2009 the bank also reported total assets of USD 4.5 billion and USD 4 billion in deposits. Banco Pichincha operates 279 branches in twenty-two provinces in Ecuador. Banco Pichincha does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.

[1] Inter-American Development Bank (IDB): “IDB closes first international syndication to an Ecuadorian bank in a decade”, http://www.iadb.org/news-releases/2010-12/english/idb-closes-first-international-syndication-to-an-ecuadorian-bank-in-a-decade-8881.html

MicroCapital’s Microfinance Universe profile: Inter-American Development Bank (IDB)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Inter-American+Development+Bank+%28IDB%29

MicroCapital’s Microfinance Universe profile: Banco Pichincha

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banco+Pichincha

MicroCapital.org Article, May 26, 2008: Banco Pichincha of Ecuador Receives $75m from Inter-American Development Bank for Microfinance Endeavors, https://www.microcapital.org/microcapital-story-banco-pichincha-of-ecuador-receives-75m-from-inter-american-development-bank-for-microfinance-endeavors/

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