PRODUBANCO

in implementation

The objective of this financing is to channel medium-term resources to Banco de la Producción S.A. (“Produbanco” or the “Bank”) to finance small and medium-sized enterprises (SMEs), as well as a green credit line for SMEs. The financing package consists of: (1) A senior unsecured loan of up to US$30 million, composed as follows: (i) US$12 million from IDB Invest; (ii) US$13 million from IDB; and (iii) US$5 million mobilized through a potential co-financing, to be financed by IDB Invest in its capacity as administrator of the Chinese Fund for Co-financing for Latin America and the Caribbean (the “Fund”). The term of the senior loans is up to five years with one-year of grace period; and (2) A potential subordinated loan of up to US$20 million is being considered. The subordinated loan consists of: (i) US$2 million (uncommitted) from IDB Invest and (ii) US$18 million from a B lender. The term for this subordinated financing will be up to eight years bullet. The remaining terms and conditions are subject to negotiation with the client, once the B lender formally confirms its participation in this operation.The Project also includes a Technical Assistance (“TA”) to provide diagnostic, training and promotion tools to Produbanco with the objective of improving and promoting its green lending products. The TA will provide direct and indirect support to Produbanco’s SME clients to be the beneficiaries of these sustainable financial products and thereby increase their access to green financing.