Wells Fargo Guarantee Program

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Project Number: 
RC3233A-01
Expected Consideration Date by the Board: 
03/11/2014
Date Posted: 
02/06/2014
Company: 
Lender of Record: Wells Fargo Bank, N.A. (“Wells Fargo”)
Sponsoring Entity: 
Partial Guarantor: Inter-American Investment Corporation
Financing Requested: 
Guarantee Program Amount: IIC Guarantees for up to US$45,000,000
Sector: 
Financial Services
Location: 
Regional (Ecuador, El Salvador, Guatemala, Honduras)
Scope Objective: 

The proposed project involves risk participation where the IIC will provide an unfunded guarantee of up to US$45 million for a program life of up to 3 years to Wells Fargo for trade finance transactions in Ecuador, El Salvador, Guatemala, and Honduras. Under this program, these trade finance transactions will have tenors of up to 1 year, and transactions will benefit SMEs in the target countries through operations with 13 selected banks in the 4 countries.

The proposed project is a direct fit with the IIC’s strategic focus to increase access to finance for local financial institutions in the region by risk-sharing in a portfolio of emerging market trade assets with a partner bank active in the region.

Environmental Review: 

Environmental and Labor Issues:

This is a Category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy. To enable Wells Fargo to better understand the IIC’s requirements, Wells Fargo will be required to attend the IIC’s environmental training workshop for financial intermediaries.  The agreement with Wells Fargo will also specify that the underlying goods to the transactions will meet the requirements of the IIC Exclusion List and require Wells Fargo to report on this on an annual basis. IIC will review the transaction portfolios to ensure compliance with the IIC Exclusion List.