PROJECT

Projects

Summary of Proposed Investment

Project Number

11147

Company Name

BANCO MULTIPLE BHD SA

Date SPI Disclosed

May 6, 2002

Country

Dominican Republic

Industry

Financial Markets

Projected Board Date

Apr 18, 2003

Status

Completed

Sector

Commercial Banking - General

Date Revised SPI Disclosed

Apr 9, 2003

Department

Global Industry, Financial Markets

Environmental Category

FI

Previous Events

Approved : Apr 23, 2003
Signed : Jun 6, 2003
Invested : Jul 25, 2003

Project Description

The project would provide scarce long-term funding for Dominican middle-market companies seeking to expand, modernize and otherwise improve their international competitiveness. By supporting middle-market enterprises, IFC would be helping to improve the economy and strengthen an important job-creating sector. This project would be IFC''s first financial sector initiative in the Dominican Republic. IFC''s engagement in the financial sector will be important in helping transfer international best practices, particularly in terms of corporate governance and risk management, to the country. By providing a leading local bank with long-term funding for on-lending to viable middle-market companies, IFC will help to meet a strong demand for long-term funds by a large segment of the country''s corporate sector. Through its environmental requirements for sub-projects, IFC will enhance the Bank''s ability to assess and mitigate environmental risk, while impacting favorably on sub-borrowers'' environmental management capability and awareness. In addition, IFC will provide the Bank with capital support in the form of a subordinated loan for Tier II capital purposes; this is the first time that such an instrument will be provided in the Dominican Republic following the enactment of a new law allowing banks to obtain Tier II capital.

Sponsor / Cost / Location

Development Impact