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.
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.
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.
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.