In November 2018, OeEB signed a long-term credit line of USD 15 million for ProCredit Bank Ecuador. The funds will be used for financing energy efficiency projects as well as for on-lending to local small and medium-sized enterprises (SME).
|Project name||ProCredit Bank Ecuador|
|Sector||Financial sector / Microfinance / SME|
|OeEB project volume||USD 15 million|
Banco Procredit S.A.
Micro, small and medium-sized enterprises (MSMEs) are the backbone of the Ecuadorian economy and play a central role in creating jobs and income. However, they have very limited access to long-term finance, which makes investments and growth difficult. OeEB's credit line to ProCredit Bank Ecuador is intended to help close this funding gap and improve access to finance for local SMEs.
In addition, at least 50% of the funds provided by OeEB will be used to finance energy efficiency measures in private households and SMEs. In doing so, OeEB is supporting the local government's plan to promote investment in renewable energy and energy efficiency. Especially in the field of energy efficiency, there is great potential - for example in the modernization of production facilities or the dissemination of energy-saving appliances.
With the credit line provided to ProCredit Bank, OeEB contributes to strengthening the private sector and to creating new jobs in Ecuador. In addition, the provision of funds for energy efficiency measures makes an important contribution to climate protection.