San Pedro Sula, Honduras, October 29, 2026 - The International Finance Corporation (IFC), a member of the World Bank Group, announced $130 million in financing for Banpaís, one of Honduras’s leading banks, to expand access to credit for small and medium-sized enterprises (SMEs), promote sustainable investments, and boost job creation in the country.
Structured by IFC, the financing includes $60 million from IFC, comprising a $25 million senior tranche and a $35 million subordinated tranche, the latter currently being structured and approved. It also includes $50 million from Deutsche Investitions- und Entwicklungsgesellschaft (DEG) and $20 million from the Norwegian Investment Fund for Developing Countries (Norfund), both participating as parallel lenders. Of the total financing, 70 percent will be allocated to SMEs, with a focus on women-led businesses, and 30 percent to renewable energy projects, primarily distributed solar generation and biomass.
According to María del Rosario Selman-Housein, Executive President of Banpaís, “The trust placed in our institution through this financing is as valuable as the impact it will have on Honduran SMEs, helping them grow, strengthen their competitiveness, create jobs, and contribute actively to the country’s economic development.”
“We are pleased to strengthen IFC’s partnership with Banpaís to foster more productive and resilient businesses that can create more and better jobs in Honduras,” said Sanaa Abouzaid, IFC Regional Director for Mexico, Central America and the Dominican Republic. With the support of DEG and Norfund, the project is expected to contribute to the creation of 8,900 direct and indirect jobs over the next five years.
According to Gudrun Busch, Global Head of Financial Institutions at DEG, the transaction demonstrates how development finance institutions can join forces to achieve impact at scale. “Together with Banpaís, IFC and Norfund, we are supporting Honduran SMEs and strengthening the conditions for sustainable growth and job creation,” she said.
“In a country where inequality remains high and three out of four workers are employed in the informal economy, expanding opportunities for businesses and their workers is essential to achieving more inclusive growth. Through this investment in Banpaís, Norfund aims to help close the SME financing gap and support the creation of formal jobs, which can provide families with greater economic stability and access to social protection and health services. This helps reduce their vulnerability and strengthen their ability to withstand economic and climate-related crises and other shocks. In this way, the investment seeks to promote more inclusive, resilient, and sustainable growth in Honduras,” said María Esther Boquín, Norfund Investment Manager for Latin America.
The transaction seeks to address two challenges that constrain the growth of Honduran businesses: access to finance and a reliable, competitive energy supply. The SME financing gap, which disproportionately affects women, is equivalent to approximately 22 percent of GDP. At the same time, financing for renewable energy solutions can help businesses reduce costs and disruptions and improve efficiency, in line with Honduras’s goal of generating 70 percent of its electricity from renewable sources by 2035.
IFC’s relationship with Banpaís began in 2009, when the Honduran bank joined IFC’s Global Trade Finance Program (GTFP). In 2022, IFC provided Banpaís with a $60 million loan to support SMEs affected by the COVID-19 pandemic, and in 2024 it provided $50 million in financing to expand lending to women-led medium-sized enterprises.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2026, IFC committed a record $105 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Banpaís
Banpaís is a universal bank and Honduras’s fourth-largest bank by loan portfolio, with a presence in every department of the country through a network of 184 branches, 255 ATMs, and 4,032 banking correspondents. It has a 13.7 percent market share in net lending. As of December 2025, the bank had $2.8 billion in deposits, a net loan portfolio of $3.4 billion, and total assets of $4.6 billion. In 2007, Banco Industrial, S.A. (BI), Guatemala’s largest bank, acquired 91 percent of Banpaís’s shares through Bi Capital Corporation (Bi Corp); the remaining 9 percent is held by 400 minority shareholders. BI is the principal subsidiary of Bi Corp, the holding company of BI Capital Group. Banpaís is headquartered in San Pedro Sula and has more than 2,850 employees. More information: www.banpais.hn.
About DEG
For more than 60 years, DEG has financed and advised private companies operating in emerging and developing countries. We are one of the largest development finance institutions for the private sector, with a portfolio of €11.7 billion. As an impact and climate financier, we support companies that want to address transformation and seize the opportunities it presents. Our clients receive not only tailored financing and advisory solutions, but also benefit from our market knowledge, impact and climate expertise, and international network. In this way, DEG, a subsidiary of the KfW Group, contributes to creating more skilled jobs and local income and to strengthening local value creation, in line with the Sustainable Development Goals (SDGs). More information: www.deginvest-americalatina.com
About Norfund
Norfund, the Norwegian Investment Fund for Developing Countries, is the Norwegian Government’s development finance institution. Established in 1997, its mission is to create jobs and improve lives by investing in businesses that drive sustainable development. Norfund invests equity, debt, and other instruments across four areas: financial inclusion, renewable energy, scalable enterprises, and green infrastructure. In addition to its development mandate, Norfund manages Norway’s Climate Investment Fund, which supports the transition to clean energy in developing countries. As of December 2025, its committed portfolio totaled $5 billion. Companies in which Norfund invests employed 788,000 people, while financial institutions in its portfolio provided services to 158 million customers. For more information, visit www.norfund.no.
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