BBVA Panama is fully owned by Banco Bilbao Vizcaya Argentaria, a Spanish financial institution which heads the group of entities that give form to Grupo BBVA. Grupo BBVA is a global financial holding which provides a wide array of both wholesale and retail financial services in 32 countries around the globe.

The proposed project consists of a long-term credit facility for up to $25 million for on-lending to farmers and agri-SMEs.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

BBVA Panama is headquartered in Panama City, Panama. The Bank has 18 branches located across the country.

The Project will provide SME funding to a systemic bank in Panama, generating a range of social and economic benefits which include promoting economic growth and raising productivity, as well as increasing banking penetration in rural areas. The anticipated development impacts of the Project are to: (i) Enhance access to finance for SMEs. The Project will allow the Bank to provide its clients access to funding with longer maturities, enabling them to undertake investment projects with more appropriate financing structures; (ii) Generate a demonstration effect. The Project is expected to create a demonstration effect for other banks and further enhance IFC's developmental impact in Panama; and (iii) Assist in the deepening of Panama's financial sector by increasing access to finance for low-income groups and other priority sectors;

- Through this project, IFC would allow the Bank to diversify its funding base, hence improving its liquidity risk profile. - Long term funding is limited in the Panamanian market. Accordingly, IFC's five-year loan would allow the Bank to better manage its maturity gap, thus permitting it to increase its offer of term credit to SME in Panama - The Project will facilitate the Bank's enhancement of an appropriate social and environmental management system commensurate with its business lines.

This project has been classified as Category FI according to IFC’s Environmental and Social Review Procedure. Because the key S&E risks of the project are associated with BBVA Panama’s SME portfolio, which include sectors with potential E&S risks such as agribusiness and manufacturing, IFC will review the Bank''s portfolio and capacity to manage S&E risks in order to determine the applicable requirements, which may include a combination of the IFC Exclusion List, the national S&E laws and regulations as well as the Performance Standards. IFC may recommend specific measures to manage S&E risks in certain sectors where E&S risks are perceived to be higher. IFC will also assess the Bank’s labor practices according to IFC’s labor standards. The Bank will be required to:
Develop, upgrade or maintain a Social and Environmental Management System to ensure compliance with the applicable requirements;
Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and
Submit a periodic report to IFC as per a format to be provided by IFC.