Banco CMF S.A. SME Financing Partnership

For inquiries and comments to IIC, contact:
IIC’s Communications Group
E-mail: divulgacionpublica@iadb.org

For project inquiries, including environmental and social questions related to an IIC investment, please contact the client or the IIC using the contact information provided above. In addition, project affected communities have access to the IIC Independent Consultation and Investigation Mechanism.
Tel:+1 (202) 623-3952
Fax: +1 (202) 312-4057
Address: 1300 New York Ave. NW Washington, DC. USA. 20577
E-mail: mecanismo@iadb.org or MICI@iadb.org

Project Number: 
12235-01
Expected Consideration Date by the Board: 
12/12/2017
Date Posted: 
11/06/2017
Company: 
Banco CMF S.A.
Financing Requested: 
Total IDB Group Financing: Up to US$15 million
Sector: 
Financial Services
Environmental and Social Category: 
FI-2
Location: 
Argentina
Country: 
Scope Objective: 

The proposed Project entails extending a seven-year revolving credit facility for up to US$15 million to Banco CMF, a niche market player in Argentina with a clear focus on the financing of small and medium enterprises (“SMEs”). The proposed project has the purpose of assisting Banco CMF in its efforts of increasing its lending position to SMEs in Argentina.

Environmental Review: 

1. Project Description:  The project consists of a debt facility for up to US$15 million to Banco CMF to on lend to Argentine SMEs.

2. Environmental and Social Categorization and Rationale: In accordance with the IIC Environmental and Social Sustainability Policy, the project is classified as category “FI-2” operation because the client´s current or future subprojects entail a medium level of risk.

3. Environmental and Social Risks and Impacts: Environmental and Social impacts and risks of the project are linked with those associated with the operation of CMF´s portfolio, which are expected to have medium to low environmental and social risks, for example contamination of land and water (manufacturing), increased greenhouse gas emissions (manufacturing), noise and air pollution (construction, manufacturing), occupational and health and safety risks (construction, manufacturing), trade and commerce of products and substances that are not in compliance with the IIC´s exclusion list, operations (trade), environmental and social impacts and risks associated with the agricultural supply chain (habitat conversion and degradation, poor land use, deforestation, contamination), impacts on protected areas (agriculture), environmental and social impacts on coastal zones, lakes and rivers in protected areas that may result from natural disasters, such as earthquakes, forest fires and landslides.

4. Mitigation Measures/Environmental & Social (“E&S”) Action Plan: CMF has developed a Sustainable Management Guide for Environmental and Social and Government Risks; potential E&S risks associated with its clients’ operations are identified and evaluated by the performing of site visits whose results are summarized on an Environmental and Social Risk Report. It is expected that under the current operation, the client will enhance its E&S management and Human Resources practices, by adopting the IFC Performance Standards as a guide in the preparation of E&S management documentation.

Contact Information: 

For inquiries about the Project, contact

Client Contact Name: Patricio Ovalle
Title: Head of Financial Institutions
Phone number: +54 (11) 4318-6858 / 6800
Email address: povalle@bancocmf.com.ar