February 11

Banco Santander, DEG, IDB Invest, Itaú BBA Loan $150 Million to Banco Pan to Boost Digital Financing of Vehicles, Microenterprise, Consumption in Brazil

By Sheen Gupta

IDB Invest, a member of the US-based Inter-American Development Bank (IDB) Group, is leading a loan package totaling USD 150 million for Banco Pan SA, a Brazilian commercial bank, with the aim of increasing access to digital financial services for people with low incomes. The loan funding includes USD 50 million from IDB Invest, USD 25 million from Germany’s Deutsche Investitions-und Entwicklungsgesellschaft (DEG), and USD 75 million as a B loan funded in unspecified portions by Spain’s Banco Santander and Brazil’s Itaú BBA. Banco Pan plans to use the funding, which has a term of up to four years, to on-lend to low-income retirees, microentrepreneurs and motorcycle buyers.

Founded in 1969 and headquartered in São Paulo, Banco Pan provides digital financial services such as consumer loans, credit card services, vehicle financing and insurance products. As of the third quarter of 2019, it reports total assets of BRL 32 billion (USD 6.1 billion) and annualized return on average equity of 11.9 percent from services provided to 4.7 million customers. The bank is controlled by BTG Pactual, a Brazil-based investment bank with operations in the UK and seven countries in the Americas. BTG Pactual reports BRL 542 billion (USD 104 billion) in assets under management or administration as of September 2021.

Banco Santander is a commercial bank that was founded in 1857. As of 2022, it has 600 locations in 15 countries, mainly in Europe and the Americas. As of 2020, the bank reports total assets of EUR 1.51 trillion (USD 1.72 trillion), loans and advances to customers of EUR 916 billion (USD 1.05 trillion) and customer deposits of EUR 849 billion (USD 971 billion).

Photo courtesy of Juanedc.

Source: MicroCapital (link opens in a new window)

digital finance