The Overseas Private Investment Corporation (OPIC), an agency of the US government that seeks to facilitate investment by US-based firms in developing countries, recently loaned Banco Industrial USD 150 million for on-lending for low- and middle-income homeownership in Guatemala. The loan proceeds are intended to allow 3,000 people to become homebuyers for the first time. The investment is a part of OPIC’s Northern Triangle initiative, which is slated to bring “USD 1 billion in private-sector investment to El Salvador, Guatemala, and Honduras, and promote economic growth and stability throughout the region.”
Founded in 1968, Banco Industrial is a privately owned provider of commercial and corporate banking services in Guatemala. The bank serves 1.7 million customers through 240 branches and 1,400 other service points in the country. As of 2017, the bank reports total assets of GTQ 86.4 billion (USD 11.2 billion), deposits of GTQ 55.2 billion (USD 7.1 billion), a loan portfolio of GTQ 46.6 billion (USD 6 billion), return on equity of 19.8 percent and return on assets of 1.67 percent.
Established in 1971, OPIC is an agency of the US government whose function is to promote economic partnerships and invest in areas deemed important to US interests. OPIC provides loans, grants, advisory services and political-risk insurance to private equity funds; financial institutions; and projects in the healthcare, energy, technology and education sectors. During 2018, the organization mobilized total capital of USD 10.6 billion from both the public and private sectors, closing the year with 112 active projects.
By Umit Naz Deryaoglu, Research Associate
Sources and Additional Resources
OPIC press release
https://www.opic.gov/press-releases/2018/opic-provides-150-million-banco-industrial-expand-access-affordable-housing-guatemala
Banco Industrial homepage
https://www.corporacionbi.com
Banco Industrial 2017 financial report
https://www.corporacionbi.com/gt/bancoindustrial/balance-general-consolidado-bi
OPIC homepage
https://www.opic.gov
OPIC’s Northern Triangle program
https://www.opic.gov/opic-action/regional-priorities/northern-triangle
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