The proceeds from the line of credit will go toward providing financing to SMEs in Panama, as well as toward helping Multibank diversify its long-term sources of funding.
Multibank Inc. is a bank entity established in 1990. Today, it is one of the largest banks in Panama funded with Panamanian capital. Through local subsidiaries, it provides factoring, financial leasing, trust, insurance, asset management, and brokerage services, among others. Over the years, the bank has built up expertise in services and products aimed at the SME segment, which accounts for 40% of the total corporate portfolio.
Environmental and Labor Issues:
This is a category FI-3 project according to the IIC’s Environmental and Social Sustainability Policy because the subprojects in the financial intermediary’s current or future portfolio are considered low risk. In order to improve the evaluation of the labor and environmental aspects of its operations, Multibank attended the IIC’s environmental training workshop for financial intermediaries and has developed a sustainable management system that includes procedures for evaluating its clients from an environmental standpoint. Eligible Enterprises financed with IIC funds will be subject to an environmental review and must comply with national environmental and labor laws, regulations, and standards, as well as IIC environmental guidelines. Furthermore, Multibank must send annual environmental reports to the IIC detailing progress in implementing the sustainable management system and the implementation of these practices.