48852 - Project Otto

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Summary of Investment Information

Project Number

48852

Company Name

Bismark Maritime Limited

Date SPI Disclosed

Sep 25, 2024

Country

Papua New Guinea

Region

East Asia and the Pacific

Projected Board Date

Nov 8, 2024

Environmental Category

B - Limited

Status

Active

Last Updated Date

May 9, 2026

Department

Regional Industry - INF Asia & Pac

Industry

other

Previous Events

Approved : Nov 5, 2024
Signed : Dec 17, 2024
Invested : May 6, 2026

Sector

other

Additional Project Attributes

Blended Finance

Project Description

The proposed Investment is an up to US$ 20 million financing facility to Bismark Maritime Limited (“Bismark” or the “Company”), a Papua New Guinean-owned shipping company, operating in the domestic/inter-islands cargo transportation market. The financing will support Bismark’s plans to acquire two younger multipurpose cargo vessels (MPVs), in order to increase the cargo carrying capacity. The newly acquired vessels are expected to be more efficient in terms fuel consumption and green-house-gas emissions. The project is expected to be supported by the IDA PSW Local Currency Facility (IDA PSW LCF) as described in the Blended Finance Section.

Associated Advisory Engagement

IFC will provide services related to supporting Bismark in developing a decarbonization roadmap for its fleet and operation. Bismark has also committed to join the IFC “Meri Save Trades” (“Women know trades” in tok Pisin) program, an 18-month program supporting women’s employment in PNG by strengthening recruitment, promotion, and retention of women in technical and trades positions and build safe and respectful workplaces for companies.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
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	Others (only if UoP is not available)

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

Development Impact

The Project will improve the quality of maritime freight shipping services, and in turn enable an increased access to critical goods in coastal communities of Papua New Guinea (PNG). At the market level, IFC investment will contribute to increasing the resilience of inter-island domestic shipping and logistics consumption hubs and also provide point to point service between small-medium sized ports. This “last-mile” connectivity at competitive rates is a key element to enabling the functioning of maritime trade, which the larger vessels of main liners cannot service due to infrastructure constraints (iii) Inclusiveness: The Company provides a critical service to the fresh food producers in highland for local. The upgrade incapacity in sustainable transport infrastructure would increase its outreach to suppliers.

Financial additionality Financing structure: IFC will provide a long-term debt facility to fund the capacity expansion and fleet renewal of the business. Private companies in PNG have limited access to long-term fixed-rate capital and only a limited number of lenders are providing shipping financing. IFC financing provided will be in local currency helping improve the sustainability of the Project by matching the currency of the revenues with debt obligations. IFC will help the client scale up operations to meet growing demand. Resource mobilization: IFC’s involvement is expected to help mobilize additional funds needed for the Project. Potential investors value IFC’s experience in the sector and due diligence in adequately mitigating structuring, technical and implementation risks. Non-Financial additionality Knowledge, innovation, and capacity building: The proposed investment is expected to be the first asset-based financing which is not available in the local financing market. The introduction of such financing to the Company and validation by IFC will allow it to access financing for its future fleet renewal program. IFC is also expected to provide technical assistance through pre-investment to develop a sustainability strategy for Bismark, support Bismark to comply with environment and social standards for its operations. Standard-setting: As this is the first engagement with Bismark, IFC will work with the Company to meet IFC Performance Standards, thereby enhancing the overall standard and rigor of E&S standards followed by the Company.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Domestic inter-island shipping throughput in PNG	TEU		Not Available	Not Available	Not Available
Number of trips per year	number		Not Available	Not Available	Not Available
Volume of Containers Handled	Number		Not Available	Not Available	Not Available
Board Composition Total (#)	number	Board is currently made of the founder and his two sons. CG is working with the client to implement a board made of the founder and two independent directors	Not Available	Not Available	Not Available
Board Composition Women (#)	number	No women on the board	Not Available	Not Available	Not Available
Direct Employment (#) Operations And Maintenance	individuals	Number of employee as of April 2024	Not Available	Not Available	Not Available
Female Direct Employment (#) Operations And Maintenance	individuals	proxy number Based on number of total employees as of April 2024 and % of women as Feb 2024 (% women for april 2024 was not provided)	Not Available	Not Available	Not Available
Number of Senior Management Positions	individuals		Not Available	Not Available	Not Available
Number of Women In Senior Management	individuals		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

This is a Category B Project according to IFC’s Policy on Environmental and Social Sustainability (2012) given that the proposed project is expected to have limited adverse E&S impacts that are few, largely reversible, and readily addressed through mitigation measures.

Key E&S risk and issues associated with this project include: (i) adequacy of corporate E&S management systems (ESMS); (ii) vessels operation and maintenance in line with International Maritime Organization (IMO) conventions, International Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code), International Convention for the Prevention of Pollution from Ships (MARPOL), and IFC Performance Standards (PS); (iii) labor and working conditions and occupational health and safety (OHS) compliance with PS2 and ILO Maritime Labor Convention; (iv) ballast water management and spill control; (v) combustion air emissions, effluents, and waste management; (vi) ERP, including life & fire safety (L&FS); (vii) resource efficiency; (viii) impacts on sensitive coastal and marine environments; (ix) security and compliance with International Ship and Port Security (ISPS) Code; and (x) stakeholder engagement and grievance redress, including in relation to crew interaction with communities.

Contacts

For Inquiries About the Project, Contact

Bismark Maritime Limited
Mr. Jamie Sharp
Chief Executive Officer
+675 4721990 / +675 72026500
jamie@bismark.com.pg
Montoro Street, P.O.Box 750 Lae, Morobe Province, Papua New Guinea
https://www.bismark.com.pg/

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. Its purpose 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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