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DEG, FMO and Proparco finance Sudameris for its green and gender inclusive projects in Paraguay

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Sudameris, DEG, FMO, Proparco
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Three European private sector development banks - DEG, FMO and PROPARCO - have just granted a senior loan of 110 million dollars (USD) to Sudameris Bank. This financing, to which Proparco is contributing almost 30%, will enable the bank to support projects with a climate co-benefit and to promote the inclusion of women, two of Team Europe's priority themes.

Sudameris Bank S.A.E.C.A. has just been granted a USD110m senior loan from Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and Dutch Entrepreneurial Development Bank (FMO), respectively for 36%, while PROPARCO is contributing 28% of the total amount. In December 2019, the Paraguayan bank already benefited from a USD120m loan granted by the three Team Europe partners, all of which was allocated towards the financing of green/climate projects.

This new line of credit will also enable Sudameris to finance green/climate projects led by Paraguayan companies, for a total of 40% of the Proparco’s amount. The bank also confirms its commitment to the inclusion of women: 50% of the amount allocated by Proparco and DEG will be directed to the financing of gender inclusion, to promote the development of this clientele. The loans will have to meet at least one of the 2X Challenge criteria (for entrepreneurship, leadership and employment, for women). Finally, 10% of this loan will be reserved exclusively for SMEs.

The commitment of DEG, FMO and PROPARCO to Sudameris since 2019 has been accompanied by a real effort from the company, which is currently one of the driving banks in Paraguay on E&S and sustainable finance issues. In particular, it contributes to the definition of market practices on these themes by being one of the founding members of the sustainable finance roundtable in Paraguay (Mesa de Finanzas Sostenibles "MFS"), which it currently chairs.

PROPARCO's financing and that of its European counterparts contribute to the United Nations' Sustainable Development Goals (SDGs): SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth) and SDG 13 (Measures to Combat Climate Change).