CAF allocates USD 137 million to Banco Pichincha for green financing and women-led SMEs in Ecuador

CAF, in its role as Lead Arranger, has successfully structured an A/B loan transaction for a total of USD 137 million in favor of Banco Pichincha. The main objective of this loan is to promote inclusive and sustainable growth in Ecuador's productive sector, especially in key areas such as women-led MSMEs and environmental sustainability projects. 

The transaction was supported by six leading international financial institutions: Banco Santander, Bladex, Banco Continental, BHD International Bank (Panama), Unibank and Banco Aliado, in their role as B Participants.

This operation reaffirms CAF's commitment to mobilizing private capital, aligning itself with the methodologies harmonized by the Multilateral Banks. It also strengthens its green financing strategy and its support for gender equality in access to credit, while reflecting the trust in Banco Pichincha.

The loan proceeds will be allocated to projects that promote the growth of MSMEs led by women and to business initiatives with a focus on environmental sustainability. They will specifically finance companies that promote productive activities based on efficient energy management and the development of green businesses.

CAF continues to consolidate itself as a mobilizer of private sector resources for high-impact projects in the region. Through this operation, the institution reinforces its strategy of generating innovative financial solutions that leverage economic development, social inclusion and environmental sustainability in Latin America and the Caribbean as a multilateral that is making inroads in the private sector. With this new operation, CAF not only reaffirms its commitment to the objectives of green financing and gender inclusion, but also promotes the strengthening of the capacities of the private sector in Ecuador.

Antonio Silveira, CAF's vice president for the private sector, stated, "the operation is an example that it is possible to join forces to support the development of a sector that is strategic for the Ecuadorian economy, such as micro, small and medium-sized enterprises.”

Santiago Bayas, General Manager of Banco Pichincha, stressed that: “This financing reinforces the confidence of regional and global banks in Banco Pichincha, reaffirming our commitment to our clients and sensitive segments of society. The funds are intended to support micro-entrepreneurs and sustainability projects. CAF has been a strategic partner for many years, and we hope to continue collaborating on joint long-term objectives.”

Ultimately, this loan represents a strategic alliance of commitment between CAF and the international financial sector, highlighting the potential of A/B operations to facilitate access to financing for a greater number of projects, backed by the experience and strength of the participating institutions.