The Overseas Private Investment Corporation (OPIC), an agency of the US government that promotes economic partnerships in countries deemed important to US interests, recently committed to loan USD 100 million to Banco Pichincha of Ecuador for on-lending to micro-, small, and medium-sized enterprises (MSMEs) that are “owned by, led by, or support women.” Wells Fargo, a US-based financial services provider, also has committed USD 8.5 million to the project, which is expected to reach 53,000 female entrepreneurs in its first five years. The loan is part of OPIC’s 2X Women’s Initiative, which is intended to increase financing options for women-owned and women-operated businesses worldwide.
Banco Pichincha President Antonio Acosta said, “The agreement between our entities will strengthen the role of female clients in the economy and reinforce our commitment with financial inclusion.”
The US Ambassador to Ecuador, Michael J Fitzpatrick, added, “Developing the economic potential of Ecuadorian women – who work on average 20 hours more per week than men – will benefit all Ecuadorians. The loans that result from this financial agreement will boost women’s ability to provide for their families, improve their communities and contribute to the economic growth of Ecuador.”
Through its service to individuals, MSMEs and larger businesses, Banco Pichincha has earned a Smart Campaign Client Protection Certificate and the “Best Issuing Bank Partner for Women” award from the World Bank Group’s International Finance Corporation. Founded in 1906, the bank has expanded from Ecuador into Colombia, Panama, Peru, Spain and the US. As of December 2018, Banco Pichincha holds assets totaling USD 10.6 billion.
Wells Fargo provides banking, insurance, investment, mortgage and consumer finance services through 7,500 locations, 13,000 automated teller machines (ATMs) and online. As of September 2019, the bank reported USD 1.9 trillion in total assets.
Established in 1971, OPIC provides loans, grants, advisory services and political-risk insurance to private equity funds and financial institutions as well as projects in the healthcare, energy, technology and education sectors. As of December 2018, the organization reported total assets of USD 9.6 billion and 12-month gross revenue of USD 250 million, closing the year with 112 active projects in 88 countries. As of 2019, OPIC is undergoing a transformation into the US International Development Finance Corporation, a new government agency that will have more “resources and flexibility” to invest in regions such as Latin America and focus on initiatives such as women’s economic empowerment. The new entity has been equipped with a “more than doubled” investment cap of USD 60 billion.
By Anna Gravois, Research Associate
Sources and Additional Resources
OPIC press release
https://www.opic.gov/press-releases/2019/opic-and-wells-fargo-partner-banco-pichincha-expand-lending-women-ecuador
OPIC homepage
https://www.opic.gov
Banco Pichincha homepage
https://www.pichincha.com/
Wells Fargo homepage
https://www.wellsfargo.com
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