Summary of Proposed Investment
Project Number
11131
Company Name
Republic Financial Holdings Limited
Date SPI Disclosed
Jan 31, 2002
Country
Trinidad and Tobago
Industry
Financial Markets
Projected Board Date
Mar 4, 2002
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry FIG LAC & EUR
Environmental Category
FI
Previous Events
Approved : Mar 11, 2002
Signed : May 6, 2002
Invested : Jun 25, 2003
Project Description
The project consists of a credit line of up to US$40 million to Republic to provide medium to long-term financing to productive projects operating in a variety of sectors in T&T and other IFC member countries of the Caribbean. Currently, Republic’s long term funding is scarce, forcing the bank to rely on its capital, or take the maturity risk or raise investment funds from third party private sources in order to finance longer-term projects. This results in maturity mismatch or lost opportunities for Republic in face of growing demands to finance projects in industry, private infrastructure and tourism.
By way of this investment, IFC would finance Republic''s current project pipeline, reducing the bank''s maturity mismatch and enhancing environmental as well as financial management, i.e. better asset/liability management at the bank. The credit line would provide much-needed long-term financing for projects in T&T and throughout the Eastern Caribbean region and would accrue the following benefits: longer loan tenor, broader clientele, expansion of SME lending and portfolio diversification. Moreover, IFC would demonstrate its confidence in the T&T financial system, raising the environmental awareness and leveling the playing field within the banking sector. Strengthening the financial sector in the country is one of the World Bank Group''s priorities and IFC''s collaboration with a major local bank would be important in this effort, as the project would establish a foundation for other IFC financial markets development work in the country and region.
By way of this investment, IFC would finance Republic''s current project pipeline, reducing the bank''s maturity mismatch and enhancing environmental as well as financial management, i.e. better asset/liability management at the bank. The credit line would provide much-needed long-term financing for projects in T&T and throughout the Eastern Caribbean region and would accrue the following benefits: longer loan tenor, broader clientele, expansion of SME lending and portfolio diversification. Moreover, IFC would demonstrate its confidence in the T&T financial system, raising the environmental awareness and leveling the playing field within the banking sector. Strengthening the financial sector in the country is one of the World Bank Group''s priorities and IFC''s collaboration with a major local bank would be important in this effort, as the project would establish a foundation for other IFC financial markets development work in the country and region.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Gregory Thomson, Executive Director
Republic House; 9-17 Park Street; Port of Spain, Trinidad, W.I.
Phone: (868) 625-3617
Fax: (868) 624-1323
Republic House; 9-17 Park Street; Port of Spain, Trinidad, W.I.
Phone: (868) 625-3617
Fax: (868) 624-1323