Climate change and economic growth
Banco Internacional is the fifth largest bank in Ecuador and stands out in the country’s financial landscape with its strong focus on financing SMEs and green projects. The bank has been offering green loans for many years, financing initiatives that reduce GHG emissions, such as renewable energy and energy-efficiency projects. As of today, it has built up a green lending portfolio of around USD 150 million.
Banco Internacional is also the first private financial institution in Latin America to issue a blue bond, together with IFC, which allows the bank to provide long-term loans and support projects that contribute to a sustainable blue economy and the preservation of clean water resources, including sustainable aquaculture and fishing.
The bank has set the ambition to achieve carbon neutrality in all its operations.
Collaboration among funds
The investment in Banco Internacional is a collaboration among four funds within Triodos IM’s Impact Private Debt and Equity division:
- Triodos Groenfonds
- Triodos Emerging Markets Renewable Energy Fund
- Triodos Microfinance Fund
- Triodos Fair Share Fund
For Triodos Groenfonds and Triodos Renewable Energy Emerging Markets Fund this is an opportunity to increase exposure to a new country. The investment supports the strategy of both funds to offer loans earmarked for renewables and energy efficiency to financial institutions in emerging economies. These investments are complementary and a well-balanced diversifier to the senior loans provided to utility scale renewable energy projects.
For the Triodos Financial Inclusion funds (Triodos Microfinance Fund and Triodos Fair Share Fund) this is an opportunity to finance one of the leading players in financing the SME sector in Ecuador, which is the cornerstone of the country’s economy.
This investment also strengthens our partnership with Dutch development bank FMO, thereby building on FMO’s deal structuring and risk management expertise, especially with regards to ESG risks and the bank’s social and environmental leadership.