CAF and Barbados Sign USD 75 Million Agreement to Advance Cultural Heritage and Tourism Development
February 21, 2025
CAF leads USD 137.5 million syndicated loan for Banco Guayaquil
The syndicated structure composed of an AB loan from CAF (USD 87.5MM) and two parallel financings from European development finance institutions: BIO and Proparco (which together reached an additional amount of USD 50MM), is an example of the great appetite of international investors to participate in this type of structure in Ecuador.
CAF's A/B loan allowed the incorporation of 7 renowned entities as B participants, including: Banco Continental, Banco de Occidente, Banesco Panama, Blue Orchard, Multibank, responsAbility and Unibank. The B tranche reached USD 67.5MM, which is considered private capital mobilization.
December 28, 2024
Banco Guayaquil S.A., a financial institution with an outstanding track record in Ecuador, obtained a syndicated loan for USD 137.5 million from CAF, BIO - Belgian Investment Company for Developing Countries, and Proparco - Société de Promotion et de Participation pour la Coopération Economique. The syndicated loan led by CAF, in its role as Mandated Lead Arranger, mobilized a total of USD 117.5 million, achieving a mobilization ratio of almost 6:1, from both international private sector entities and two European Development Finance Institutions (EDFIs).
This syndicated facility, which included an A/B loan from CAF and two parallel financings, consolidated the participation of 9 different institutions, setting a record for CAF in terms of the number of investors in an operation in Ecuador. It also strengthened collaboration with Proparco and BIO, as well as the relationship between Latin America and Europe.
The loan will enable Banco Guayaquil to expand its green financing portfolio, focusing on projects that promote energy efficiency, the use of renewable energies, and the reduction of carbon emissions. A significant portion of the loan will also be earmarked to support MSMEs led by women, thus contributing to their inclusion and strengthening their role in the country's economic fabric.
Antonio Silveira, CAF's vice president for the private sector, said: "This operation is strategic for the country's business community and will allow us to deploy resources to the productive and export sector, enabling us to support more operations of MSMEs led by women and environmental sustainability projects.
Julio Mackliff, executive vice president of Banco Guayaquil, emphasized that "this syndicated loan reinforces our commitment to sustainable development in Ecuador, enabling us to expand our green financing offer and effectively support MSMEs led by women. The participation of leading European institutions such as Proparco and BIO demonstrates the confidence of international markets in Banco Guayaquil and our ability to lead initiatives with a social and environmental impact. This financing allows us to continue developing innovative and sustainable projects that not only contribute to environmental protection, but also promote financial inclusion in key sectors of our country.
This financing, with the support of European institutions such as Proparco and BIO, will also enable Banco Guayaquil to strengthen environmental and social management practices, promoting the implementation of green and sustainable business projects.
With this operation, CAF consolidates its position as a valuable player in mobilizing private capital in Latin America and the Caribbean to promote sustainable economic development, with special emphasis on the countries' financial sectors to ensure a positive impact on the lives of thousands of Ecuadorians.
