The Inter-American Development Bank (ADB) will provide up to $17.5m in loans Banco BHD of Dominican Republic to strengthen its capital position and expand its long-term lending to the corporate sector, including small and medium-sized enterprises.
The facility consists of a senior five-year unsecured loan of up to $5m and an eight-year subordinated loan for up to $12.5m from IDB’s ordinary capital.
The IDB loan may also be complemented by additional financing from commercial banks.
BHD is the third largest bank in the country with a 14.7% market share of assets. Its majority shareholder is Grupo BHD, a Dominican holding company with interests in the financial services, through Centro Financiero BHD (CFBHD). Banco Sabadell of Spain, Banco Popular of Puerto Rico and the IFC are investors in CFBHD.