35055 - Working Capital Systemic Solutions

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

35055

Company Name

SOUTHEAST BANK PLC

Date SPI Disclosed

Apr 11, 2014

Country

Bangladesh

Region

South Asia

Projected Board Date

May 30, 2014

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Aug 8, 2014
Signed : Aug 5, 2015
Invested : Sep 2, 2015

Sector

Commercial Banking - Trade and Supply Chain

Project Description

The project consists of providing a Short-Term Loan for the amount of up to US$30 million (for 12 months, renewable two times at IFC’s option for an additional 24 months, for a maximum aggregate period of up to 36 months) to Southeast Bank Limited (the “Bank” or “SEBL”) to support the foreign currency needs of SMEs in Bangladesh.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

Development Impact

(i) Financial Market Deepening: Facilitating increased local bank access to the commercial loan market and also facilitating access to finance for credit constrained SMEs, especially to meet working capital requirements.
(ii) Demonstration Effect: IFC''s proposed package signals its confidence in Bangladesh economy and also helps increase the Bank''s credibility in international credit markets helping continued growth of its trade financing operations.
(iii) Job Creation: Bangladesh, an IDA country, still has nearly a third of its population below the poverty line in spite of improving macroeconomic fundamentals. IFC''s investment will further support business growth and spur indirect job creation in the SME and Export oriented segments.
(iv) Boost Export Competitiveness: The Facility will help accelerate economic growth in Bangladesh by providing SMEs and exporters with trade finance solutions to their working capital requirements and assist in payments for imports utilized.

Catalytic Role: IFC, by bringing more Bangladeshi banks under the BSLF facility (STF and GTFP), will allow for an alleviation of a system wide foreign currency liquidity constraint and provide for increased facilitation of access to the commercial loan market for the SMEs.
Other Value Added Service (SME Support): IFC continues to play a leading role in implementing a comprehensive SME trade support program to promote sustainable economic growth in Bangladesh. Complementing IFC''s efforts through GTFP, IFC will further enhance its support for SME trade in Bangladesh through BSLF, providing supplementary and much-needed trade working capital to SMEs. On the macro level, this will help sustain both import and export of goods required by Bangladesh.
On the micro level, it will provide assistance to SMEs to better manage cash flows and assist them in being competitive in regional and global markets, supporting domestic job creation and diversifying the country''s economic base.

E&S Category Rationale / Risks and Mitigation

The project is to support an existing client for its trade finance and short-term lending operations through its Offshore Banking Unit (OBU). The on lending will primarily comprise providing working capital financing through short-term loans to importers/exporters, the majority of which are SMEs. The project presents medium E&S risks and impacts which are readily manageable. Hence, the project is categorized as Category FI-2. The E&S requirements will include IFC Exclusion List, additional list of restricted commodities and national E&S laws and regulations.

The main E&S risks and impacts of the project relate to occupation health and safety, labor and working conditions, and pollution aspects at the client’s SME borrower’s premises. Most of these can be managed through adequate implementation of national laws and good industry practices.

The central bank of Bangladesh has provided guidelines to all banks and financial intermediaries to implement an Environmental Risk Management system. Accordingly, the client is implementing the required framework for compliance to country E&S laws. The E&S risk management system also incorporates screening against IFC exclusion list and restricted commodity list. The client has appointed a senior officer as in charge of implementing the E&S risk management system. The client is also in compliance with IFC PS-2 on labor and working conditions.

Contacts

For Inquiries About the Project, Contact

Md. Nasir Uddin, Principal Officer
Southeast Bank Limited
International Division
Eunoos Centre, Level # 3, 52-53 Dilkusha C/A, Dhaka-1000, Bangladesh
Tel : 880-9571115 Fax : 880-2-9550093 Email : mailto:nasiruddin@southeastbank.com.bd

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer