IIC Approves Revolving Credit Line for Banistmo S.A. in Panama
Credit line of up to US$40 million will fund loans for small and medium-sized enterprises in the region
Washington, D.C., September 15, 2015 — The Inter-American Investment Corporation (IIC) approved a credit line of up to US$40 million to Panamanian bank Banistmo S.A. to fund subloans to small and medium-sized enterprises (SMEs) in Panama and other countries in the region for working capital and fixed asset investments.
“The support the IIC is providing to Banistmo and the bank’s commitment to promote the development of SMEs in the region will contribute to diversifying its sources of medium- and long-term financing and support the growth of its loan portfolio,” said Ana Rosa Echeverri, senior IIC investment officer in charge of the operation.
“This new long-term line of credit signed with the IIC represents a new step in our strategy of strengthening and diversifying our sources of non-traditional funding and enables us to move forward in our commitment to be a more customer-friendly bank by supporting the development of the SME sector, which is a key sector for the region’s economy,” said Juan Gonzalo Sierra, Banistmo’s vice president for strategy and finance.
Banistmo is an entity domiciled in Panama that began operating in 1973. Banistmo is the second largest private bank in Panama. As of March 2015, it had a market share of 12% by deposits and 14% by loan portfolio. Banistmo has a total of 455,000 clients and 55 branches. Almost two thirds of its corporate clients are micro, small, and medium-sized enterprises.
This is the IIC’s second transaction with Banistmo. The first was a loan to HSBC Bank (Panamá) S.A.—the bank’s previous name—in the amount of US$40 million. This new operation will fund close to 120 SMEs with loans with tenors of up to 36 months, thus providing them with medium-term financing for both working capital and capital investments. In contrast to the first operation, this one is a revolving credit line that can be reused by Banistmo as it repays the amounts disbursed.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on SMEs. The Corporation provides companies with financing in the form of equity investments, loans, and guarantees, as well as with technical assistance, advisory services, and knowledge products. In 2014, the IIC approved 64 operations totaling $426.3 million. Since its inception, the IIC has approved more than 920 loan and equity investments for SMEs and financial intermediaries, for a total of US$5.63 billion. An additional $3.7 billion has been mobilized through cofinancing and syndication agreements. For additional information on the IIC’s activities, visit www.iic.org.
Contact: Ana Rosa Echeverri
Telephone: 57 (1) 325-7051