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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Banco Rio de la Plata S.A.
Project ID
296
Fiscal year
2001
Status
Not Active
Guarantee holder
Banco Santander Central Hispano S.A.
Investor country
Spain
Host country
Argentina
Sector
Banking
Gross exposure
 $200.0 million
Project type
Non-SIP

Banco Santander Central Hispano S.A. received a $200 million MIGA guarantee for its shareholder loan to Banco Rio de la Plata S.A., offering protection against the risks of transfer restriction and expropriation. Of this amount, $150 million is being reinsured. The project will support the expansion of Banco Rio's operations in Argentina, following up on a guarantee issued earlier in the fiscal year. The undertaking focuses primarily on small-scale mortgage lending in the form of long-term finance to individuals and corporations, and aims to expand financing to SMEs.

The investment holds significant development potential. Banco Rio de la Plata S.A. is one of just two banks in the country to offer 30-year residential mortgages. With the investment, the project enterprise should be able to substantially increase the number of mortgages it can offer, particularly to its primary client base of low- to middle-income households. Banco Rio de la Plata S.A. will also be able to provide better rates on its loans to both individuals and corporations, enabling more people to buy homes and small and medium-size businesses to grow. The project is expected to pay about $2 million a year in taxes.

 
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