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Multibank: A loan to finance renewable energy projects in Panama
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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24709661.48
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Financing details
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USD 30m loan
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Customer
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MULTIBANK
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Type of customer
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Financial institution
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Project number
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PPA1004
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Environmental and social ranking
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IF-A
This information is given at the time of signature, without prejudice to any developments in the operation/project.
By allocating a loan to Multibank, a private banking institution, Proparco is supporting financing for renewable energies in Panama. This will ultimately increase the country’s power generation capacity.
Client presentation
Multibank is a universal bank with private Panama capital. As of December 2015, it ranks 9th among the banks with a general license. Multibank is majority-owned by a Panamanian family, with DEG as one of its shareholders. It has a network of 29 branches.
Project description
Proparco’s credit line will be earmarked to finance renewable energy projects in Panama. It will allow Multibank to develop its lending activity in the sector and meet increasing needs for long-term financing.
Project impact
This operation will contribute to strengthening Panama’s power generation capacity in a context of increasing demand. It will help diversify the energy mix in a country that is still heavily dependent on fossil fuels. It will thereby have a positive impact on the climate by contributing to reducing greenhouse gas emissions in the country. More generally, it will encourage the banking sector to support green investments.