Honduran lender Banpais is set to secure a proposed $130 million IFC-led financing package to expand lending to small businesses, women-owned enterprises, and sustainable finance projects, including renewable energy, in Honduras.
The package comprises a $95 million senior loan facility, including $25 million from the International Finance Corporation (IFC)’s own account and $70 million from parallel lenders, as well as a $35 million subordinated loan from IFC to strengthen Banpais’ regulatory capital.
The proposed investment underscores the role of development finance institutions in using local banks to reach underserved businesses and build climate finance capacity in emerging markets.
Headquartered in San Pedro Sula, Banpais is among Honduras’ five largest banks, with a market share of more than 12% by total assets.
The bank operates more than 90 branches and over 4,000 service points. It is majority-owned by Bicapital Corporation, the holding company of Bicapital Group and owner of Banco Industrial, Guatemala’s largest bank.
IFC said the facility would support Banpais’ lending programme for small and medium-sized enterprises, including women-owned SMEs, as well as sustainable finance projects.
The financing is also expected to help the bank offer longer-term loans and broaden its funding sources through the participation of parallel investors.
The climate finance component gives the transaction a broader market-building angle. IFC expects Banpais to become an early adopter of Honduras’ 2025 national green taxonomy, supporting the identification and reporting of climate finance and potentially encouraging other local financial institutions to align with the framework.
The proposed facility will also support renewable energy lending, which IFC said could help Honduras improve energy security and advance its goal of increasing the share of renewable electricity.
Alongside the financing, IFC is expected to provide advisory support to strengthen Banpais’ climate finance portfolio, environmental and social risk management, and alignment with IFC Performance Standards.
The project has been classified as FI-2 under IFC’s Sustainability Policy, reflecting environmental and social risks linked to the bank’s underlying loan portfolio.
IFC said Banpais already has an environmental and social management system that is partially aligned with its requirements, but further improvements are needed for sustainable sub-projects, including stronger project categorisation, expanded internal expertise, and improved grievance and communication mechanisms.
Banpais will also be required to update parts of its human resources framework, including policies on freedom of association, retaliation, and gender-based violence and harassment.
The project remains subject to IFC approval.