[{"bbox": [97, 153, 1133, 259], "category": "Text", "text": "local level, investing in both mitigation and climate resilience, in a strategic synergy with the Global Gateway Strategy and the corresponding Investment Agenda in Honduras². In this regard, technical assistance is crucial in helping public financial institutions to develop sustainable and accessible financing, thereby unlocking the financial system's potential to offer gender-smart, green financing to MSMEs."}, {"bbox": [97, 285, 1133, 442], "category": "Text", "text": "The Action will bring access to sustainable and inclusive finance for MSMEs and Households by enhancing the institutional and technical capacity of SDBs and Financial Intermediary Institutions to appraise, implement and monitor inclusive investment projects in green and climate-smart value chains. This will enhance capabilities to identify and develop gender-smart, green and climate-smart financing for MSMEs and household sectors, underpinning local efforts to improve access to credit and boost productivity and competitiveness of Honduran MSMEs."}, {"bbox": [97, 471, 1133, 575], "category": "Text", "text": "The Action supports an EIB sovereign loan operation under NDICI IW1 to the Government of Honduras. The Borrower will be the Government of Honduras. Funds will be on-lent to three State-owned Development Banks³, who will be the financial intermediaries in the operation, providing financing to the final beneficiaries of the EU-EIB funds. These banks are:"}, {"bbox": [97, 583, 721, 609], "category": "Text", "text": "1. Honduran Bank for Production and Housing (BAHPROVI);"}, {"bbox": [97, 610, 773, 636], "category": "Text", "text": "2. National Bank for Agricultural Development (BANADESA); and"}, {"bbox": [97, 637, 857, 663], "category": "Text", "text": "3. National Service for Entrepreneurship and Small Business (SENPRENDE)"}, {"bbox": [97, 675, 1133, 836], "category": "Text", "text": "The loan operation would be structured under the European Investment Bank's (EIB) \"Five Great Forests of Mesoamerica Facility\" (step 3 – eligibility completed in September 2023). Blending resources from the EU Delegation in Honduras (through LACIF) are envisaged to support the implementation of the operation, both through an investment grant of EUR 8 million to increase the concessionality and incentivize final beneficiaries' appetite for targeted investments and the present technical assistance of EUR 7.35 million that will accompany the credits placement all along the implementation of the financial operation."}, {"bbox": [97, 860, 866, 887], "category": "Text", "text": "The Action will contribute to the following Global Gateway Initiatives in Honduras:"}, {"bbox": [97, 888, 1133, 994], "category": "Text", "text": "a) Sustainable recovery of the Yojoa Lake – in particular the sustainable development pillar (aiming at greening economic activities that currently harm the environment with sustainable solutions for human development) and\nb) Construction of the ‘El Tablon multipurpose dam’ – in particular contributing to offering economic alternatives to the communities impacted by the infrastructure works."}, {"bbox": [97, 1019, 1133, 1207], "category": "Text", "text": "Thus, activities will focus primarily on the geographical areas of the Yojoa Lake Basin, Sula Valley and Choluteca River Basins, where planned infrastructure projects approved under the Global Gateway Investment Agenda (GGIA) are located, by supporting sustainable and inclusive access to finance in order to: a) invest into sustainable, social and economic activities, with a focus on MSME, sustainable agriculture and households including renewable energy solutions; b) contribute to the greening of the agro-forestry value chains through digital and technological smart solutions; c) mitigate the impact of the EU deforestation-free products regulation (EUDR), in particular on small and medium producers (with a focus on the coffee value chain due to its weight in the Honduran economy)."}, {"bbox": [97, 1232, 1133, 1392], "category": "Text", "text": "To promote the EU's Global Gateway strategy effectively, the Action integrates a matchmaking and investment-support component that will address challenges like underinvestment in emerging sectors such as the green economy and obstacles that Honduran businesses face in accessing new markets and financing. By partnering with EU private sector entities, including ESG-oriented companies, and leveraging EU global and regional investment programs, the Action aims to unlock private investments, enhance trade opportunities, and maximize the benefits of its technical assistance programme."}, {"bbox": [97, 1417, 1133, 1496], "category": "Text", "text": "The combined intervention of these three outcomes is expected to contribute to the achievement of SDG #1: End Poverty in all its forms everywhere, SDG#5: Gender equality, SDG # 7: Affordable and clean energy, SDG #8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work"}, {"bbox": [86, 1529, 987, 1554], "category": "Footnote", "text": "² https://international-partnerships.ec.europa.eu/policies/global-gateway/eu-lac-global-gateway-investment-agenda_en"}, {"bbox": [86, 1577, 1142, 1646], "category": "Footnote", "text": "³ Even though Senprende is not a development bank, for its key role as a Public Agency responsible for guiding public policies and providing formalization services, technical assistance, financial assistance and market opportunities for entrepreneurs nationwide, in a wider sense, in the context of this Action Document, it will be considered as a State-owned Development Bank."}, {"bbox": [1038, 1682, 1143, 1706], "category": "Page-footer", "text": "Page 4 of 38"}]