MICROCAPITAL BRIEF: FMO, PROPARCO Loan $80m to Banco Supervielle of Argentina for SMEs

The Dutch development bank, which is known by the acronym FMO, recently assembled a loan of USD 80 million for Banco Supervielle, a bank in Argentina, to finance small and medium-sized enterprises (SMEs) amid the recession in Argentina. The loan is funded in equal parts by FMO and Promotion et Participation pour la Coopération Économique (PROPARCO), a development finance institution of the French government.

Milton Migotti, the head of international business and financial institutions at Banco Supervielle, commented, “We appreciate FMO and PROPARCO’s trust and growing support to Banco Supervielle. This transaction gained more meaning in the current context and will help us add value through long-term financing for our SME clients, mainly exporting SMEs from regional economies.”

Established in 1887, Banco Supervielle’s customer base includes 4,800 SMEs in sectors including manufacturing and agriculture. Banco Supervielle is a part of Grupo Supervielle, a provider of financial services in Argentina. Grupo Supervielle has total assets of ARS 141 billion (USD 2.37 billion) as of 2018.

Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private sector institutions. The bank works toward the UN’s sustainable development goals (SDGs) by funding capacity development as well as placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of 2018, the bank reported a portfolio of EUR 9.6 billion (USD 10.8 billion).

PROPARCO is the private-sector financing subsidiary of Agence Française de Développement (AFD), the French government’s overseas development ministry. The mission of PROPARCO is to encourage private sector investment to meet the SDGs by funding and otherwise supporting businesses in developing countries. During 2017, PROPARCO approved disbursements of EUR 1.4 billion (USD 1.54 billion) in 80 countries.

By Eugene DeCosse, Research Associate

Sources and Additional Resources

FMO press release
https://www.fmo.nl/news-detail/01516660-9ce9-44fe-98f6-487efed152d1/fmo-and-proparco-increase-access-to-finance-for-smes-in-argentina

Banco Supervielle homepage
https://www.supervielle.com.ar

Grupo Supervielle homepage
https://www.gruposupervielle.com

Grupo Supervielle annual reports
https://www.gruposupervielle.com/English/Investor-Relations/Financials/Annual-Reports/default.aspx

FMO homepage
https://www.fmo.nl

PROPARCO homepage
https://www.proparco.fr

PROPARCO financial information
https://www.proparco.fr/en/ressources

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