The purpose of the proposed loan is to support BBVA’s lending activities in Uruguay, where it focuses on lending to the productive sector, especially corporate clients and exporters. The IIC loan will be used to offer financing to small and medium-sized enterprises (SMEs) throughout the country and will help BBVA diversify its sources of long-term funding and shore up its capital.
Environmental and Labor Issues:
This is a category FI-2 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 medium risk. BBVA Uruguay is part of Spanish group BBVA, which adopted the Equator Principles in May of 2004 and recently became a member of the Green Bond Principles. Following the guidelines established by its parent company, the bank includes environmental risk analysis as part of its credit evaluation processes and maintains a list of restricted activities. To enable the Borrower to better understand the IIC’s requirements, BBVA Uruguay shall be required to attend the IIC’s environmental training workshop for financial intermediaries. Each subproject will be subject to an environmental review and must comply with national environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. BBVA Uruguay must also submit annual environmental reports to the IIC indicating the progress made and problems encountered in the implementation of these practices.