PROJECT

Projects

Summary of Proposed Investment

Project Number

9211

Company Name

Primer Banco del Istmo S.A.

Date SPI Disclosed

Dec 1, 1998

Country

Panama

Industry

Financial Markets

Status

Completed

Sector

Commercial Banking - General

Department

Global Industry, Financial Markets

Environmental Category

FI

Previous Events

Approved : Jan 13, 1999
Signed : Oct 30, 1999
Invested : Dec 6, 1999

Project Description

REVISED Summary Of Project Information (SPI)

Project NamePanama - Banco del Istmo, S.A.
RegionLatin American and the Caribbean
Sector
Project No009211
Projected Board DateDecember 31, 1998
Company NameBanco del Istmo, S.A.
Technical Partner and/or Major Shareholders

In 1996, the Bank went public and its shares now are listed on the Panamanian stock exchange. At the time of the IPO, majority ownership in Banistmo (approx. 73%) was held by a group of Panamanian families through privately-held financial holding company Grupo Financiero del Istmo (“GFI”). However, by the summer of 1998 a process was concluded whereby GFI shifted all its business to Banistmo and GFI’s shareholders exchanged 100% of their GFI shares for Banistmo shares. Effectively, GFI is dormant, as an operating concern and the entirety of its shares are null and void. The remaining 23% of Banistmo’s shares are publicly held by a diversified group of more than 1,800 investors.

Project Cost Including proposed IFC investment

Up to US$65 million

Location of project and Description of site

Republic of Panama

Description of Company and Purpose of Project

Banistmo had $1.4 billion in total assets (consolidated) and $870 million in gross loans at June 30, 1998. The Bank maintains a network of 34 branches in 15 Panamanian cities and has 1,000 employees. The Bank depends heavily on its deposit base to finance long term loans; the proposed IFC loan would strengthen the bank''s balance sheet by improving its maturity profile. Syndication of part of the loan would give the Bank access to long term foreign funding sources.

Environmental Category and Issues

This is a Financial Intermediary (FI) Tier 1 project according to IFC''s environmental review procedure. Banistmo will be required to apply environmental review procedures to relevant operations and to ensure that subprojects comply with Panamanian environmental, health and safety legislation and standards.

Date SPI sent to InfoShop
Revised		     December 1, 1998
December 2, 1998
      “
This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”

For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384

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