News | 10 February 2026
BBVA leads a pioneering USD 1.4 billion equivalent financing for Panama with dual guarantees from MIGA and the IBRD
The Republic of Panama has secured international financing on highly competitive terms through the region’s first sovereign loan backed by a combined dual guarantee from the International Bank for Reconstruction and Development (IBRD) and the Multilateral Investment Guarantee Agency (MIGA). BBVA led the transaction as Sole Structuring Agent and Lead Underwriter, reinforcing its position as a strategic partner for the public sector in Latin America, with the ability to design innovative solutions in collaboration with multilateral institutions.
Aligned with its strategy to diversify currencies and optimize its debt profile, the Republic of Panama has signed a syndicated loan worth JPY 219.48 billion (approximately USD 1.4 billion). The transaction, led by BBVA as Sole Structuring Agent and Lead Underwriter, sets a precedent in the region by incorporating, for the first time, an integrated dual guarantee structure combining IBRD and MIGA.
The loan is backed jointly by both institutions of the World Bank Group, which together provide 95% credit coverage. The structure is designed to maximize fiscal efficiency: IBRD offers a first-loss guarantee active throughout the life of the loan, while MIGA provides second-loss coverage, prioritized in amortization. This combination enabled the sovereign to access funding on terms significantly more favorable than those offered by traditional market alternatives.
The proceeds will be used for general budgetary purposes and to refinance existing debt, including global bonds maturing in 2026, among other uses. The loan, denominated in Japanese yen, has a 10-year tenor and highly competitive terms that support the country’s strategy to optimize its debt profile and diversify its currency exposure.
"We are very proud to have supported the Republic of Panama in a transaction that marks a turning point in sovereign financing in Latin America. This deal reflects BBVA’s commitment to public institutions in the region, with whom we maintain long-standing relationships built on trust and proximity. Our collaboration with Panama is an excellent example of how, through innovative solutions and partnerships with multilateral organizations, we can deliver value and fiscal stability to our institutional clients," said Juan Blasco, Global Head of Institutional Business at BBVA CIB.
“This transaction allows us to access resources on favorable terms and strengthen the economy. It also sends a signal to international markets about the government’s determination to advance structural reforms that improve people’s well-being,” said Felipe Chapman, Minister of Economy and Finance. “We will continue working hand in hand with our strategic partners to consolidate financial stability and create more opportunities for human development and employment for Panamanians.”
For his part, Juan Pablo Uribe, World Bank Director for Central America and the Dominican Republic, highlighted: “This marks a milestone for Panama and for the World Bank Group, reaffirming our commitment to support middle-income countries in key reforms and offer innovative financial solutions tailored to their needs. Moreover, the reforms supported by this transaction lay the foundation for more efficient and sustainable public management, aimed at improving services and quality of life for people.”
“Panama is demonstrating how the innovative use of the World Bank Group Guarantee Platform can unlock significant financing in the markets to support the government’s reform agenda,” said Ariane Di lorio, Director for Financial Institutions Group at the Multilateral Investment Guarantee Agency (MIGA). “By combining a World Bank policy-based guarantee with MIGA’s second-loss guarantee, we are helping to reduce the country’s financing costs and supporting it on its path toward fiscal sustainability, which will benefit the entire population in the long term.”
This transaction highlights BBVA’s commitment to providing strategic support to its institutional clients through tailored, effective, and high-value solutions, developed in close coordination with multilateral organizations. In Latin America, where the bank has a strong presence and long-standing relationships with leading public sector entities, BBVA reaffirms its role as a trusted partner in promoting sustainable development and financial stability across the region.