Banco BHD is the second largest private commercial bank in the Dominican Republic. Banco BHD is a subsidiary of Centro Financiero BHD, a diversified financial services company whose activities include commercial banking, consumer and micro finance, pension funds, insurance, remittances and private banking. Centro Financiero BHD is owned by four shareholders: Grupo BHD (51%), Popular International Bank Inc. (20%), Banco Sabadell of Spain (20%) and IFC (9%).

The investment would be a senior loan of up to $20 million.

20.0 million (USD)

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

* These investment figures are indicative

Banco BHD is headquartered in Santo Domingo, and has offices across the Dominican Republic.

IFC has a role to develop a financing program for energy efficiency projects in the DR. Implementation of these projects in the Dominican Republic will lead to millions of dollars of savings, which would make businesses more competitive and increase savings and employment. IFC would increase the capacity of the banking sector to finance energy efficiency projects, reduce the DR's dependency on imported oil products, increase competitiveness of the industrial and tourism sectors, and generate Greenhouse Gas emission reductions to address climate change.

High upfront investment costs are one of the key market barriers that prevent expansion of energy efficiency projects in the Dominican Republic. IFC will bring significant value to the market by way of funding the first ever such financing program in the country. By way of a successfully implemented financing program IFC will demonstrate the commercial viability of energy efficiency finance, increase the competitiveness of the industrial and tourism sectors and generate Greenhouse Gas emission reductions to address climate change. Ultimately, through its demonstration effect, the project will increase the capacity of the local banking sector to finance energy efficiency investments in the future and will serve as the basis of further replication of the structure across the whole Caribbean region.

This project involves IFC support for Banco BHD in the Dominican Republic for energy efficiency financing in the industrial and tourism sectors and has been classified as a Category FI project. Under an existing project (#26142), Banco BHD is required to comply with IFC Exclusion List and the national social and environmental (E&S) laws and regulations and has satisfactorily implemented a Social and Environmental Management System (SEMS). During appraisal IFC will review the proposed investment portfolio and determine the Applicable Requirements, which may include the IFC Performance Standards. Based on the review, IFC may require the bank to upgrade a Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC. In addition, IFC will evaluate the bank''s labor standards according to the Performance Standard 2: Labor and Working Conditions. The client will also be required to continue implement the SEMS to ensure that its investments are in compliance with the Applicable Requirements; demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2; and submit a periodic report to IFC per a format to be provided by IFC.