Banco General of Panama
$ 20 million
When Panama’s Banco General wanted to finance investments in energy efficiency and renewable energy, it came to the IDB Group for advisory services and financing. We helped the bank develop the first green credit lines available in the country.
Our involvement illustrates the multiplier effect we can have as we work with financial institutions around Latin America and the Caribbean. Supported by a five-year, $20 million loan from the IDB Group, Banco General created a green credit line portfolio of nearly $66 million, allocated to 14 different projects.
These included three small, run-of-the-river hydroelectric plants; five LEED-certified buildings, meaning they meet standards in Leadership in Energy and Environmental Design; and other projects such as energy-efficient manufacturing equipment, houses, schools and wastewater treatment plants. All told, these projects have avoided more than 68,000 tons per year of carbon dioxide emissions.
It wasn’t just financing that got this initiative off the ground but technical assistance as well. We helped the bank evaluate the feasibility of the program, develop financial products and strengthen its ability to screen and assess projects and structure transactions.
Based on the results achieved, the IDB Group went on to work with different types of financial institutions in seven other countries—Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Honduras and Mexico—to create green credit lines. As with Banco General, each of their borrowers is making its own dent in mitigating the effects of climate change.
The multiplier effect of this project extends well beyond Panama’s borders, as the IDB Group worked with financial institutions in seven other countries to create green credit lines.