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Multibank: A new loan to support SMEs 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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39471 564
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Financing details
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USD 49m 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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PPA1011
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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.
Following a 1st loan allocated in 2014 to finance renewable energy projects in Panama, PROPARCO is renewing its commitment to the Panamanian bank, which is actively involved in financing SMEs in the country. This second loan will allow Multibank to support more SMEs and offer long-term financing which is not easily accessible to Panamanian SMEs.
Client presentation
Multibank is a bank set up in 1987 in Panama. It is the country’s 3rd largest bank with Panamanian capital in terms of assets.
Multibank is historically one of the leading banks in the segment of small and medium-sized enterprises in Panama and has longstanding experience in this sector. SMEs account for over a third of the credit portfolio.
Project description
The financing will support a leading player in the financing of SMEs in Panama and provide them with long-term financing.
Project impact
This project will strengthen ties with one of the country’s strongest banks and support growth in Multibank’s SME portfolio, with an expected increase in the volume of financing for the SME client base (support for some 38 SMEs).
Most of the loans allocated will help improve the production capacity of the country’s SMEs. Indeed, PROPARCO’s financing should allow Multibank to offer a range of long-term credit which is not easily accessible to SMEs on the Panamanian market. In addition, PROPARCO’s financing will help create and maintain direct and indirect jobs (i.e. support for 7,400 jobs). It should be noted that the majority of jobs at Multibank are held by women.