MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $225m to Banco Agromercantil de Guatemala (BAM) to Expand Lending for Housing; Small, Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), a member of the World Bank Group, recently disbursed a loan of USD 225 million to Banco Agromercantil de Guatemala (BAM), a subsidiary of Colombia-based Grupo Bancolombia. The loan is for on-lending by BAM for housing as well as small, medium-sized enterprise (SME). IFC Regional Industry Manager Marcelo Castellanos commented, “Having a dynamic housing sector with access to finance for SMEs is fundamental for Guatemala’s sustainable development, and we are confident that financial institutions like BAM will play an important role in driving the growth of these sectors. BAM and Bancolombia are ideal partners in our efforts to promote access to financing in the banking sector in Guatemala and the region.” Of the loan, USD 125 million is funded directly by IFC, and USD 100 million is channeled from other unspecified investors.

BAM was created in 2000 by the merger of Banco Agricola Mercantil and Banco del Agro, two Guatemalan banking institutions. Grupo Bancolombia purchased a 60-percent stake in BAM in 2015. BAM provides banking services in Guatemala at 165 agencies in 22 departments in Guatemala as well as via a digital banking system called BAMnet. As of year-end 2018, BAM has total assets of GTQ 26.8 billion (USD 3.5 billion) and total deposits of GTQ 18.3 billion (USD 2.39 billion).

IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, IFC reports total assets of USD 94.3 billion.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2019, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2018, the World Bank has committed USD 66.9 billion of funding to partner countries.

By Eugene DeCosse, Research Associate

Sources and Additional Resources

IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/vwAllDocumentsByUNID_NL/20A9D7C35F98837285258439006D1AB8?opendocument

Banco Agromercantil de Guatemala homepage
https://www.bam.com.gt/

Banco Agromercantil de Guatemala financial reports
https://www.bam.com.gt/informacion-relevante/financial-information

Grupo Bancolombia homepage
https://www.grupobancolombia.com

IFC homepage
https://www.ifc.org

IFC annual report
https://www.ifc.org/wps/wcm/connect/corp_ext_content/ifc_external_corporate_site/annual+report/download

World Bank homepage
https://www.worldbank.org/

World Bank annual report
https://www.worldbank.org/en/about/annual-report

MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $15m In Local Currency to Stanbic Bank Zambia to Expand Financing to Small, Medium-sized Enterprises (SMEs)
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-15m-in-local-currency-to-stanbic-bank-zambia-to-expand-financing-to-small-medium-sized-enterprises-smes/

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