The Bank is a fully owned subsidiary of the East Caribbean Financial Holding Company Limited (ECFH) which is listed on the Eastern Caribbean Securities Exchange. ECFH was established in 2001 following the successful merger of the largest commercial bank (National Commercial Bank of Saint Lucia) and the sole development bank (Saint Lucia Development Bank) in Saint Lucia. Bank of Saint Lucia is the largest of ECFH subsidiaries, accounting for approximately 70% of Group assets. Other key subsidiaries include EC Global Insurance Company Limited, Bank of Saint Lucia International Limited, Mortgage Finance Company of Saint Lucia Limited, and Property Holdings and Development Company of Saint Lucia Limited. The major shareholders of ECFH are the Government of Saint Lucia (20%), Republic Bank (20%) and the National Insurance Corporation (15%).

The proposed IFC investment is a $20 million A loan for IFC’s own account. The investment will be used to strengthen the Bank’s financial fundamentals through funding diversification and to support the Bank’s growth strategy.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

Bank of Saint Lucia is headquartered in Castries. The Bank’s five branches across the country provide it with the largest branch network in Saint Lucia. IFC’s investment can be used to support the Bank’s growth both domestically and regionally.

The project will serve the following purposes: The project will assist the Bank increase the quantity and average maturity of its loans to both the corporate and retail sectors of the economy. In addition, the project may potentially provide Advisory Services to help strengthen the Bank’s strategy and capacity in SME finance, which would be phased in as part of the Bank’s long-term growth strategy.

The project is expected to contribute to the strengthening of a locally owned bank as it will enable the Bank to offer wider financing options to a broad cross-section of existing and potential clients. Such financing is important for the sustainable development of the private sector across the country and is expected to result in improved economic development. The project is also expected to contribute to increased competition in the financial sector, which is particularly important for a domestic bank that is faced with regional consolidation led by international financial institutions. In addition, the Bank will need to comply with IFC’s social and environmental management standards, and IFC will assist the Bank to establish a Social and Environmental Management System (SEMS).

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:

- The IFC FI Exclusion List,
- The applicable National Social and Environmental Laws and regulations, and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, the project will be required to:

- Develop or upgrade, if necessary, a Social & Environmental Management System (SEMS), prior to disbursement, to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.