Dutch development bank FMO plans to provide a $30 million senior loan to Paraguay’s Ueno Bank S.A. to expand financing for micro-entrepreneurs and small businesses operating in the agricultural value chain.
According to project documents accessed by Crowdfund Insider, the funding will be on-lent to micro-entrepreneurs and small and medium-sized enterprises, supporting inclusive growth and contributing to the United Nations Sustainable Development Goals on reduced inequalities and decent work and economic growth, according to project information.
Ueno Bank is a universal bank in Paraguay with total assets of $3.8 billion as of March 2026, representing a market share of about 9%.
Through its digital-first business model, the lender plays a meaningful role in advancing financial inclusion in Paraguay.
The bank’s loan book is predominantly composed of corporate clients, which account for 56% of the portfolio. Micro, small and medium-sized enterprises represent 23.2%, while consumer and microfinance lending account for 20%.
By sector, services lead Ueno Bank’s portfolio with 25% of total exposure, followed by retail and wholesale commerce at 8% and agriculture at 4%.
FMO said the investment is intended to support activities that contribute to inclusive growth.
The facility will help channel capital to smaller businesses and entrepreneurs linked to Paraguay’s agricultural sector, where access to finance remains critical for business expansion, job creation and income generation.
The transaction also reflects the growing role of development finance institutions in backing financial institutions that can reach underserved borrowers through digital channels.
Ueno’s digital-first approach is expected to support wider access to financial services for entrepreneurs and smaller enterprises across Paraguay.
Ueno Bank has been classified as Environmental and Social Risk Category B because its operations and portfolio are exposed to manageable environmental and social risks.
These risks can be mitigated through an effective environmental and social management system, according to the project disclosure.
The bank has a functioning environmental and social management system in place, which FMO said is aligned with international best practices.
The system is currently being updated to include the IFC Performance Standards.
Ueno Bank is also a member of Paraguay’s sustainable finance roundtable, Mesa de Finanzas Sostenibles, which promotes responsible and sustainable finance practices in the country.
FMO said its investment aims to support inclusive growth by increasing access to finance for micro-entrepreneurs and SMEs in the agricultural value chain.
