DCM Multibank (IFC-38570)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Countries
  • Panama
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 3, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Multibank Inc.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 21, 2018

Disclosed by Bank Sep 29, 2016


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Project Description

The loan is to be used to fund the growth of Multibank Inc.'s SME and housing portfolios. The project will improve access to finance for SMEs and low income housing in Panama, where the majority of top banks focus on corporates and high end retail clients allow the bank to access long term funding.

Multibank’s portfolio is mainly composed of retail (21%), housing (18%), commercial and service operations for both corporate and SME clients (35%). SME lending under the asset class supported accounts for approximately 5% of the total portfolio. IFC will also be providing technical assistance to bank on sustainable finance to expand the bank’s work in this area. The overall portfolio risks includes limited business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures. IFC Advisory team is at the same time providing technical assistance to Multibank on Sustainable Energy Finance (“SEF”) and developing green products.

Investment Description
  • International Finance Corporation (IFC)

The proposed investment consists of a senior loan of up to US$40 million.

Multibank Inc. is based in Panama City, Panama with 27 branches and over 60 ATMs across Panama.. It is the 9th largest bank in the country and third largest locally owned financial institution. The bank is entirely owned by Multifinancial, which is majority owned by the Btesh family (82.4%) and the German Investment and Development Corporation, DEG (6.9%) with the remainder owned by minority shareholders, none of which own more than 1%.

Private Actors

Multibank Inc. is a universal, locally owned bank with a long history of financing SMEs from its founding in 1962. It is the 9th largest bank in the country and third largest locally owned financial institution. The bank is entirely owned by Multifinancial, which is marjority owned by the Btesh family (82.4%) and the German Investment and Development Corporation, DEG (6.9%) with the remainder owned by minority shareholders, none of which own more than 1%.

Contact Information

Project Contact: Milciades Denis, Head Treausry & Investments
127 Via Espana, Edificio Prosperidad,
Panamá City, Panamá
Email Address:mdenis@multibank.com
Contact No.: +507 294 3500

ACCOUNTABILITY MECHANISM OF IFC


The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/