Project number : 34860 Region : Latin America and the Caribbean Country : Colombia Company name : DAVIVIENDA I Sector: O-AA - Commercial Banking - General Date SPI disclosed: May 30, 2014 Project Description: The project consists of a potential subordinated loan of up to US$172.5 million to Banco Davivienda S.A. in Colombia ( Davivienda ) with the purpose of strengthening its capital structure, to be subscribed in part or in whole by IFC and the IFC Capitalization (Subordinated Debt) Fund. Project Sponsor and Major Shareholders of Project Company Sociedades Bolivar is the third largest locally-owned financial conglomerate, consistently recognized in Colombia as a financial innovator among its peers. The conglomerate is a leading player in Colombia s banking and insurance segments and is expanding to other countries in Latin America. Sociedades Bolivar owns directly and indirectly 55.8% of Davivienda with the remaining ownership comprised of preferred shares (22.6%), IFC 1.97% and others (around 20%). Expected Development Impact - The Project would support a systemic bank in Colombia and Central America in order to meet the growing financial needs of the local economies. Supporting a bank with regional operations such as Davivienda is especially important as it is expected to diminish the volatility present in developing financial markets, creating therefore a positive demonstration effect. - The Project would enhance Davivienda%s ability to support small and medium enterprises in Colombia, which will in turn stimulate growth, employment generation and poverty reduction in the country. - Creating a demonstration effect for other financial institutions in Colombia by bringing best practices in environmental and social management systems IFC%s Expected Role and Additionality - IFC will be supporting a systemic bank with a significant role to play in Colombia and Central America by providing long term Tier II Capital to strengthen its capital base. - IFC would continue to support a strategic partner in the region, present in many areas of relevant importance for IFC (ie., mortgage, SME finance, infrastructure finance, etc). - This Project is expected to mobilize resources from the SDF, with IFC playing its catalytic role, allowing Davivienda to get more resources from a new group of investors through the Fund%s limited parties. - Environmental and Social Standards Implementation: IFC would continue to support the Davivienda%s risk management framework in terms of environmental and social risks.
Project completion date : 2015-05-30 12:00:00
Major organization : DAVIVIENDA I
Address : Bogota Attn: Elizabeth Uribe Investors Relation Officer
Financier : International Finance Corporation (IFC),
Financier address : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA Tel: (202) 473-3800 Fax: (202) 974-4384