Banistmo, S.A. – Panama: Sustainable Bond to Boost Social and Green Investments in Panama

in implementation

The proposed transaction involves IDB Invest participating as the lead investor in the issuance of the first senior sustainable bond byBanistmo S.A.(“Banistmo”, the “Bank”, or the “Issuer”) (the “Financing” or the “Project”) in Panama. The bonds will have a term of up to five years, and IDB Invest will subscribe up to US$75 million of the total amount. The funds will be used to expand Banistmo’s financing targeted at women-led Small and Medium-Sized Enterprises (“SMEs”) and the Bank’s green portfolio. Additionally, the Project will provide greater diversification of funding sources and long-term financing.The Project includes Technical Assistance Services (“TA”) focused on: (i) updating the existing framework with robust Key Performance Indicators (“KPIs”); ensuring alignment with the principles and guidelines of the International Capital Market Association, Panama’s sustainable taxonomy, and applicable local legislation; and (ii) strengthening the Bank’s sustainable financing strategy; and (iii) obtaining and publishing a Second Party Opinion (“SPO”).