Banco Promerica was recognized with the Gold Award in the Sustainable Bond of the Year category at the prestigious Global SME Finance Awards 2024, which was awarded during the Global SME Finance Forum in São Paulo, Brazil, and highlights the bank’s commitment to sustainability and economic development in El Salvador.
Banco Promerica’s Deputy Manager of Sustainability and Correspondent Banking, Laura Ávalos, received the prestigious award on behalf of the institution. This recognition is a testament to leadership in promoting sustainable practices.
“Sustainability is a fundamental pillar of Banco Promerica’s strategy and has integrated it into all its operations, from risk management to the development of new products and services, to help more companies adopt it as a practice in their operations”, said Ávalos.
The SME Finance Forum was created in 2012 by the G20 to promote SME financing. It is managed by the IFC. Annually it holds an event to share knowledge and promote the growth of SMEs in the world. In this event, 4 categories are awarded with an international panel of more than 80 judges to qualify the applications to the contest.
In 2022, Banco Promerica issued the first Sustainable Bond in El Salvador, through a program for up to $100 million for a term of 5 years. The funds obtained through this bond have been used to finance projects that promote sustainable economic development in the country, with a special focus on:
1.SMEs: Support for small and medium-sized enterprises so that they can grow and generate employment.
2.Companies led by women and companies led by young people: Support for segments to promote economic development and inclusion.
3.Green projects: Financing renewable energy and energy saving projects to protect natural resources, mitigate long-term risks such as global warming.
Banco Promerica’s success in the Global SME Finance Awards is due to several key factors that were reflected in the financial solutions provided with the Sustainable Bond capital, among them:
1.Social Impact: The funds obtained have been used to finance projects that benefit SMEs, women- and youth-led businesses, and renewable energy and energy efficiency projects.
2.International Standards: In project eligibility criteria and third-party verification of projects, which ensures that funds are used in a transparent and accountable manner.
3.Economic development: By facilitating access to financing for companies with environmental, social and governance criteria, the bond contributes to El Salvador’s inclusive and sustainable economic growth.
Through the issuance of the sustainable bond, the financing of 5 green and 3 social categories was made possible, allowing companies to adopt better practices to improve their competitiveness, reduce risks, lower costs and consequently favor their growth.