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Overview

[China Co-Financing Fund] IDB administers $4 million loan from CHC to Banpaís for on-lending to SMEs

Commitments (Constant USD, 2023)$4,256,506
Commitment Year•2017Country of Activity•HondurasDirect Recipient Country of Incorporation•HondurasSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 3, 2017
Last repayment
Oct 2, 2022

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • IDB Invest (formerly Inter-American Investment Corporation or IIC)

Receiving agencies

Private Sector

  • Banco del País (Banpaís)

Implementing agencies

Intergovernmental Organizations

  • China Co-Financing Fund for Latin America and the Caribbean (CHC)

Private Sector

  • Banco del País (Banpaís)

Loan desecription

[China Co-Financing Fund] IDB administers $4 million loan from CHC to Banpaís for on-lending to SMEs

Grant element•9.5505%Interest rate (t₀)•5.17%Interest type•Fixed Interest RateMaturity•5 years

Narrative

Full Description

Project narrative

On 13 October 2017, the Inter-American Investment Corporation (IIC, now IDB Invest) signed a 12 million USD unsecured senior loan contract with Banco del Pais S.A. (Banpais), a commercial bank in Honduras. Of the 12 million USD, 8 million USD would be provided by IIC and the remaining 4 million USD would be provided by the China Co-Financing Fund for Latin America and the Caribbean (CHC). The loan has a five year maturity period and a 5.17% interest rate. The loan was used for on-lending to small and medium-sized enterprises (“SME”), in an effort to expand Banpaís' SME portfolio. The funds could be used from November 17, 2017 through November 17, 2022, but were completely drawn down as of June 30, 2018. The first disbursement took place on September 15, 2017.

Staff comments

1. IDB Invest uses the following language to describe the financing arrangement: "Of the US$12 million, the Inter-American Investment Corporation (“IIC”) will contribute US$8 million from its own account, and will bring potentially in an additional US$4 million through the China Co-Financing Fund." The IDB Invest financial summary notes 4 million USD as the syndicated/cofinancing amount for the project, which seems to signal that 4 million USD was provided by the China Co-Financing Fund. 2. The Banpaís financial summary for 2017-2018 confirms that a 12 million USD loan was acquired from the IIC, although it does not mention the Co-Financing Fund or any other contributors to the loan financing. 3. The China Co-Financing Fund was established on 14 January 2013 with a contribution of 2 billion USD by the People's Bank of China, and it is administered by the IDB. For more information, see Umbrella Record ID#86526.