BDO is listed in the Philippine Stock Exchange with a market capitalization of $2.6B and is generally well traded. SM Investment Corp. (SMIC) is the largest shareholder in BDO, and together with the Sy family and affiliated entities, has an aggregate interest of about 60.2% in the bank. The other main shareholders are IFC Capitalization (Equity) Fund, L.P. (5.2%), Trans Middle East Philippine Equities, Inc. (3.6%), IFC (1.8%), GE Capital Philippines (1.4%), and United Overseas Bank (0.9%). The balance of the shareholdings are publicly owned.

The total size of the Facility is estimated to be $44 million. Under the proposed terms of the Facility, BDO would be responsible for generating a portfolio of loans that satisfy certain criteria to be set by the Bank and IFC after the appraisal. IFC’s participation would involve guaranteeing the risk on 50 percent of that loan portfolio, which would include support from the Global Environment Facility ("GEF").

22.81 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	22.81
Loan
Equity

* These investment figures are indicative

BDO is headquartered in Metro Manila, Philippines and operates an extensive network of branches throughout the country. BDO also has a branch in Hong Kong Special Administrative Region of the People’s Republic of China.

The following development benefits are expected: IFC is contributing to the development and diversification of the financial sector by assisting in the development of new markets and product lines with significant growth potential. IFC’s project complements BDO’s strategy to support the EE and RE sectors and will enable the Bank to manage risk and grow its EE and RE assets at a faster pace than it would on its own. Environmental and social benefits: The Philippines is heavily dependent on energy as an input and has one of the highest electricity rates in the region. The project will contribute to increasing efficiency in industry and reduce operating costs. In addition, the project will also contribute to pollution reduction by increasing usage of more efficient technologies with fewer harmful side-effects.

The risk sharing facility, combined with IFC’s technical support in the EE and RE sectors, will position BDO to be a market leader in the effort to provide much needed financing to companies in various industry sectors that will support EE and RE growth throughout the country.

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 potential environmental and social risks of the activities proposed to be supported by this facility and determine the Applicable Performance Requirements which may include a combination of IFC FI Exclusion List, the applicable national social and environmental laws and regulations, and IFC Performance Standards. As BDO has implemented a social and environmental management system (SEMS), IFC will review the capacity and track records of the bank to manage E&S risks through the SEMS for accounts under the RSF. IFC may suggest supplemental actions to address any gaps identified in the SEMS.

Based on the review, the project will be required to:
· Upgrade, if necessary, its existing social and environmental management system, prior to commitment to the satisfaction of IFC
· Identify responsible, qualified persons to manage and implement the SEMS
· Commit to implement the SEMS, to ensure that activities supported by IFC financing are in compliance with the Applicable Performance Requirements
· Apply the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
· Submit a periodic report to IFC as per a format to be provided by IFC