The International Finance Corporation (IFC), a member of the World Bank Group, announced a $100 million financing package for Banco Pichincha. The investment will significantly improve access to financing for women-owned microenterprises and support climate resilience initiatives in critical sectors such as agriculture and fishing.
The $100 million subordinated loan will consist of $55 million from IFC‘s own account and $45 million mobilized from participants under IFC’s syndications program.
According to Global Fishing Watch, Ecuador is the largest tuna fishing nation in the eastern Pacific, and seafood exports are among its top three sources of income. The country’s waters are home to some of the world’s most valuable fisheries, with tuna, jumbo squid and large pelagic fish targeted by international fleets.
“For years, we have relied on the trust of multilateral organizations that share our vision of generating a positive impact on Ecuadorian society and promoting more sustainable practices among our clients. This process will allow us to boost the growth of women entrepreneurs and strengthen agricultural practices in the country,” said Santiago Bayas, General Manager of Banco Pichincha.
Matilde Bordón, IFC Country Manager for Ecuador and Peru, stated: “By supporting women-owned microenterprises and promoting sustainable agriculture, this financing for Banco Pichincha allows us to consolidate IFC’s strategy for Ecuador and the region, which is based on three fundamental pillars: inclusion, sustainability, and productivity. The investment also aligns with the World Bank Group’s Green, Resilient, and Inclusive Development (GRID) framework, which emphasizes building resilience and inclusion in all aspects of the economy and society.”
The Ecuadorian economy, which showed a strong post-pandemic recovery in 2021 and 2022, faced new challenges in 2023 and 2024 due to increased insecurity, falling oil prices, fiscal consolidation, and adverse climatic events such as a severe drought that caused an electricity crisis. These factors reduced the adequate employment rate and increased underemployment and other forms of inadequate employment, particularly for women.
The financing gap for SMEs in Ecuador is estimated at $17.9 billion, with a significant portion affecting women-owned businesses. The IFC said improving access to financing for climate resilience initiatives is essential, especially in vulnerable sectors such as agriculture and fishing, which are vital for the livelihoods of many Ecuadorians.
IFC said Banco Pichincha is the largest bank in Ecuador and has been ranked among the Top 100 global companies with the highest sustainable growth by TIME magazine, being the only Ecuadorian company to achieve this ranking.
