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Panama: a 3rd loan to Multibank to support SMEs
Project
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Signature date
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Location
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Panama
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Financing tool
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Financing amount (Euro)
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16482610,84
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Financing details
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USD 20m loan
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Customer
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MULTIBANK INC.
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Type of customer
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Financial institution
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Country of headquarters
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Panama
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Project number
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PPA1020
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Environmental and social ranking
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IF-B
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco and DEG have allocated a USD 50m loan to the Panamanian bank Multibank. The objective of this loan is to be able to continue to finance local SMEs during the Covid-19 crisis.
Client presentation
With a total balance sheet of USD 4.7bn as at December 2019, Multibank is the 6th largest private bank in Panama. It has been a client of PROPARCO since 2014.
Project description
The operation involves a senior debt credit line of USD 50m (USD 30m for DEG and USD 20m for Proparco) under the Friendship Facility led by DEG, the German development finance institution. The objective is to support Multibank’s financing activity for local SMEs, in particular during the Covid-19 crisis.
Project impact
This project will support some 1,500 jobs over the next 5 years, in particular in the SMEs financed by the bank. It should be noted that about 50% of Multibank’s employees are women: this proportion should remain stable.
The project will also mobilize USD 23m of private finance.
The project should thereby contribute to SDG 8 (Decent work and economic growth) and SDG 9 (Industry, innovation and infrastructure).