Target Information

FMO is partnering with Banco Improsa, a prominent private bank in Costa Rica that has been an ally since 2002. Ranking as the seventh-largest private bank in the country, Banco Improsa manages assets amounting to USD 593 million as of December 2024. The bank focuses on serving small and medium-sized enterprises (SMEs) primarily in the service, commerce, and construction sectors. To support its expansion, FMO is providing a senior unsecured loan of USD 45 million, with a specific emphasis on financing women-owned or women-led SMEs, which will constitute 60% of the total loan amount.

Industry Overview in Costa Rica

Costa Rica's economy is heavily bolstered by its SMEs, which play a crucial role in job creation and economic growth. These enterprises are responsible for a significant portion of the national GDP, and their contribution to innovation and diversity in the marketplace cannot be overstated. The private banking sector, including institutions like Banco Improsa, has demonstrated resilience and adaptability, enabling it to cater to the specific needs of SMEs.

Despite facing challenges such as competition from larger banks and economic fluctuations, the financial services industry in Costa Rica continues to evolve. The market is increasingly recognizing the need for targeted support programs for SMEs, especially those led by or serving women entrepreneurs. This shift is essential for promoting gender equality and fostering economic inclusivity within the country.

Moreover, the Costa Rican government has launched several initiatives aimed at enhancing access to finance for SMEs. These programs are designed to stimulate innovation and entrepreneurship, which are critical components of sustainable economic development. The alignment of FMO’s investment strategies with these national priorities further underscores the importance of their partnership with Banco Improsa.

Rationale Behind the Deal

The rationale for FMO’s investment in Banco Improsa lies in the significant potential for growth within the SME sector in Costa Rica, particularly for women-led businesses. By providing capital to Banco Improsa, FMO aims to enhance financial access for underserved segments of the market, thereby driving local economic development. This initiative not only supports SMEs but also promotes gender inclusion and contributes to the broader goal of reducing inequalities.

Information About the Investor

FMO, as a leading impact investor, specializes in supporting sustainable private sector growth in emerging markets and developing countries. With a legacy of over 50 years, FMO has established a solid track record of empowering individuals and enhancing their quality of life through responsible investments. The organization’s commitment to fostering economic and social development underpins its investment strategy, focusing on projects that demonstrate positive impact and long-term sustainability.

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The investment in Banco Improsa by FMO is seen as a strategically sound move, given the vital role played by SMEs in Costa Rica's economy. This partnership supports local employment opportunities and promotes gender equity within the financial sector. Investing in women-led businesses not only addresses social disparities but also strengthens community resilience.

Furthermore, given the growing emphasis on financial inclusion and the potential for SMEs to contribute to economic growth, this investment aligns well with recognized global trends. FMO's approach to financing Banco Improsa positions it to effectively address the financing gap faced by women entrepreneurs in Costa Rica.

Overall, this deal is anticipated to facilitate significant economic advancement while also prioritizing social values. FMO's continuous support for initiatives that align with its mission to reduce inequalities reinforces its reputation as a responsible impact investor.

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