44003 - WCS COVID CARD

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Summary of Investment Information

Project Number

44003

Company Name

CARD BANK. INC.

Date SPI Disclosed

Nov 2, 2020

Country

Philippines

Region

East Asia and the Pacific

Projected Board Date

Nov 6, 2020

Environmental Category

FI-3 - No Impact

Status

Completed

Last Updated Date

Mar 7, 2022

Department

Regional Industry - FIG Asia & Pac

Industry

Financial Markets

Previous Events

Approved : Nov 3, 2020
Signed : Nov 27, 2020
Invested : Dec 18, 2020

Sector

Commercial Banking - Trade and Supply Chain

Additional Project Attributes

Blended Finance

Project Description

The proposed project entails an IFC investment of up to PHP500 million (US$10 million equivalent) in a one-year, renewable senior loan) to CARD Bank Inc. (“CARD Bank” or “the Bank”) with at least 75 percent of the loan being targeted at women and women-owned businesses. The investment aims to support the Bank’s working capital lending program to its micro, small and medium clients impacted by Covid-19 (the Project).

The Project is expected to be supported by the Women Entrepreneurs Finance Initiative (We-Fi) in the form of a performance-based incentive (“PBI”) of up to 0.2% of the total project cost of PHP 500 million to incentivize on-lending of the proposed working capital loans to women and women-owned/women-led enterprises. The estimated subsidy provided by We-Fi assumes that the Project will fully reach the agreed impact and shall only be paid out upon achievement of the pre-defined gender target. We-Fi is a multi-donor initiative to address barriers to financial access and provide related services that address public and private-sector constraints to women entrepreneurs and women-led SMEs across the developing world, thereby promoting jobs and boosting economic growth.

Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: http://www.ifc.org/blendedfinance. To support this increase in trade volumes at this most critical time, IFC is starting this support through existing clients while remaining open to engaging with other eligible financial institutions providing working capital in emerging markets.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.32
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to MSME (mix of Micro and SME)

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

By supporting its clients' capacity to sustain operations during this acute shock, IFC best positions the private sector to support the economic recovery process, shortening the time it will take for the most vulnerable to return to their traditional income-earning opportunities. Project Outcome: By providing access to finance/liquidity to relevant stakeholders (emerging market financial institutions, and through them, their customers), the Project will support stakeholders' capacity to sustain operations and to expedite post-crisis recovery. The Project intends to provide up to PHP 500 million of liquidity to CARD Bank, which will then be on-lent to approximately 43,500 MSME clients. Market Creation: By sustaining the ability to provide these services, IFC's facility is intended to promote jobs as well as broader stability that comes about by providing for the going concern of market participants in Philippines.

IFC's additionality is driven largely by its countercyclical role during crises. The Financial Institutions Group (FIG) Facility component contributes: successful experience with rapid crisis response efforts, an extensive network of financial institutions that support emerging markets; programs aimed at investing both large scale and transactional liquidity and capital for trade and working capital finance and mobilization capacity.

E&S Category Rationale / Risks and Mitigation

The proposed project entails a short-term loan under the COVID-19 facility to support CARD Bank’s microfinance operations in the Philippines. The E&S risks associated with CARD Bank’s lending activities are low. Therefore, the project is categorized as a FI-3 project according to IFC Sustainability Policy. The project will not support coal-related activities and higher E&S risk business activities that may include a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant Occupational Health and Safety risks. Applicable E&S performance requirements will include IFC Exclusion List and relevant national E&S laws and regulations. Being an existing client of IFC, CARD Bank has implemented a simple environmental and social management system (ESMS) and assigned E&S responsibilities. Under the project, CARD Bank will be required to continue implementing its ESMS and retain E&S responsibilities. The labor practices of CARD Bank are aligned with IFC Performance Standard 2 on Labor and Working conditions.

Contacts

For Inquiries About the Project, Contact

CARD Bank Inc.
Marivic M. Austria
President and CEO

cardbankcsr@cardmri.com

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

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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.

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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.

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