Banco General, S. A. is incorporated under the law of Panama and started operations in 1955. The Bank operates under the General Banking License of the Superintendence of Panama, which allows it to carry out its business in Panama and overseas. Banco General's subsidiaries include: Compania Istmena de Seguros, S. A., Finanzas Generales, S. A., B. G. Investment Co., Inc., Empresa General de Seguros, S. A., Overseas Capital Markets, Inc., BG Valores, S. A., Banco General (Costa Rica), S. A. and Profuturo Administradora de Fondos de Pensiones Y Cesantias, S. A. Banco General is owned by Panamanians with its shares trading in the local stock exchange. It is the largest Panamanian private retail bank, and holds leading market positions in corporate, mortgage, auto lending, and savings and time deposits. IFC has had a long standing relationship with Banco General that dates back to 2000. IFC and Banco General have co-participated in infrastructure financing in Panama.

The proposed IFC investment consists of a credit line of up to $50 million.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

Banco General is headquartered in Panama City and has branches throughout Panama.

The proposed financing by IFC will support the growth of Banco General’s low income mortgage portfolio. It will also enable the Bank to reduce term mismatch.

Long term funding is important to reduce term mismatch risk in mortgages. The proposed project will provide long term funding for Banco General to expand its low income housing mortgage portfolio.

The proposed project consists of a USD50 million credit line to an existing client to provide middle and low income mortgages in Panama and has been classified as Category C according to the IFC Environmental and Social Review Procedure. During the appraisal IFC reviewed the activities to be supported through the credit line and determined that they have low E&S risks. Banco General has implemented an Environmental and Social Management System (ESMS), reviewed by IFC, to assess sub-project/sub-client compliance with IFC’s Exclusion list and host country E&S laws. As part of the continuing relationship, IFC and the client will consider enhancements in the existing ESMS to apply the IFC’s Performance Standards. The client will be required to: (i) maintain its SEMS per the existing requirements under the outstanding loan; (ii) continue to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and (iii) continue to submit a periodic report to IFC per the requirements under the existing loan.