Project Abstract Banco Bolivariano EC
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Project Abstract Banco Bolivariano EC-L1102 The proposed project consist of A/B Loan for Banco Bolivariano, an existing client for SCF under the TFFP, to support its mortgage financing activities specially the expansion to middle income individuals. Ecuador’s housing market has experienced important transformations as rural residents continue migrating to urban areas leading the latter to account for more than 61% of the country’s total population. This demographic change, among other factors, has contributed to an estimated housing gap of approximately 1.2 million units. In this scenario, although mortgage lending in Ecuador has been growing steadily, it has not adequately reached the middle-income segments, which appears to be a major constraint for the sector’s development. The Facility entails a long-term loan of up to US$27 million, which is expected to consist of: i) a senior, unsecured A Loan of approximately US$22 million to be funded by IDB, and ii) subject to market demand, an approximately US$5 million senior B loan to complement the clients demand on a best effort basis. Bolivariano is Ecuador’s fifth largest bank and was established in 1979 in Guayaquil and presently counts on a nationwide network of over 112 branches and 250 ATMs. As of December 2010, bank’s assets amounted to US$1.7 billion and equity reached US$141 million.
