EC-L1100 : Banco Pichincha Subdebt Facility

The proposed transaction is based on the LACC Subordinated Debt Facility (RG-X1088) approved by the Bank¿s board in August 2010 and consists of a subordinated financing (which qualifies as Tier II capital under local regulatory requirements) of an approximate amount of US$50 million to Banco Pichincha CA, comprised of an up to US$40 million A loan provided by the IDB and an expected US$10 million B loan funded by commercial investors. IDB participation would support Pichincha¿s micro, small and medium enterprises (MSMEs) loan portfolio growth and would help to improve the competitiveness and efficient development of the Ecuadorian private sector, specifically the MSME sector.