Banco Davivienda Honduras
The project consists of a loan of up to US$3.9 million to Banco Davivienda Honduras S.A. The purpose of this loan is to support Honduran small and medium-sized enterprises (SMEs) through operations to finance working capital or the purchase of fixed assets.
Banco Davivienda Honduras is owned by Banco Davivienda Colombia, a bank that belongs to Grupo Empresarial Bolívar de Colombia, which has been in business for more than 70 years.
Environmental and Labor Issues:
This is a category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy because the subprojects in the financial intermediary’s current or future portfolio are considered low risk. For the review of its operations, the Borrower is implementing the environmental and social risk management system of Banco Davivienda in Colombia. Davivienda Colombia’s social and environmental responsibility practices can be found in its Sustainability Report 2012, published on its website. Davivienda Colombia is currently an IIC client and periodically submits environmental performance reports to the Corporation.
To enable the Borrower to better understand the IIC’s requirements, Banco Davivienda Honduras S.A. will be required to attend the IIC’s environmental training workshop for financial intermediaries. Subprojects financed with IIC funds will be subject to an environmental review to ensure that their activities are not among those on the IIC list of excluded activities and comply with national environmental and occupational safety standards and laws. Moreover, Banco Davivienda Honduras S.A. will be required to submit annual environmental reports to the IIC detailing progress in the implementation of its environmental and social risk management system for the evaluation of these aspects of its operations.