Unibank, S.A.
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Unibank, S.A. (Unibank) is an existing customer of FMO and a medium size commercial bank in Panama. The Bank has total assets of USD 643mln and a loan portfolio of USD 447mln as of June 2024. Unibank primarily focuses on providing loans to local enterprises (SMEs and small corporates), with 85.3% of its portfolio corresponding to commercial clients in various sectors and the remaining 14.7% to retail clients (6.8% consumer and 6.9% mortgage loans).
What is our funding objective?
The USD 40 million senior term facility (of which USD 30 million committed and USD 10 million uncommitted) consists of an SME tranche (up to 25% of the facility) and a Green tranche (at least 75% of the facility). The SME tranche will be used to support Unibank to grow its SME portfolio and 10% of the total facility will be specifically allocated to support financial inclusion, while the Green tranche will be on-lend to green projects in line with FMO’s green lending criteria, aimed at renewable energy and energy efficiency in Panama.
Why do we want to fund this investment?
Providing financing to small and medium enterprises and green projects in Panama will contribute to FMO’s strategic goal to reduce inequalities, create jobs, and reduce GHG emissions. The facility is expected to receive both an FMO Green and Reducing Inequalities label.
What is the Environmental and Social categorization rationale?
Unibank is classified as E&S Category A, in accordance with FMO’s Sustainability Policy. Unibank's portfolio has a sizeable exposure to large corporate clients. However, financial exposure to sectors with potentially significant and adverse environmental and social risks is limited and lies in the agribusiness and mining sectors. Key potential impacts and risks related to these sectors in the country could include forced/child labor, poor occupational health and safety practices (e.g. dehydration linked to chronic kidney disease, lack of proper personal protective equipment, and pesticide poisoning), informal work, discrimination against vulnerable communities such as Indigenous Peoples, and negative impacts to biodiversity. Unibank manages its Environmental and Social (E&S) risks through an existing Environmental and Social Management System (ESMS) operated by a dedicated E&S specialist. As part of the transaction, Unibank is required to apply the EDFI Exclusion List, Panama’s E&S laws and regulations, and the IFC Performance Standards for applicable transactions.
More investments
| Date | Total FMO financing |
|---|---|
| 12/7/2022 | USD 28.50 MLN |
- Website customer/investment
- https://www.unibank.com.pa
- Region
- Latin America & The Caribbean
- Country
- Panama
- Sector
- Financial Institutions
- Publication date
- 9/4/2024
- Deadline for feedback
- 11/3/2024
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A
- Translation
- https://www.fmo.nl/unibank-s.a.