The majority of the Bank’s shares are owned by a conglomerate, and the balance of the Bank’s shares are owned by various shareholders.

The project will consist on the acquisition and resolution of a non-performing asset (NPA) portfolio of face value of around US$85 million, for a total purchase price of US$55.0 million.

32.41 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	32.41
Equity	0.0

* These investment figures are indicative

The Bank is headquartered in Metro Manila, Philippines and the assets of the DA portfolio are located in Metro Manila, Luzon, Visayas, and Mindanao, Philippines.

(i) Market development: The successful implementation of the project could spark the interest of other market players and evolve into a common practice. Furthermore, this could become an important stabilization mechanism for the Philippine financial sector and help IFC to address the current NPLs issues of the bank;
(ii) Best practices: As part of the project IFC would promote international insolvency standards, creditors'' rights and collection practices for the resolution of the distressed assets; and
(iii) Market transparency: Through this project, IFC would be helping to assign a market value to a NPL portfolio. If successful, the proposed project has the potential to be replicated by other entities in Asia.

(i) Countercyclical role - This transaction will provide IFC the opportunity to play a countercyclical role in the Philippine financial market, allowing systematic institution to dispose of its non-performing assets through a market based mechanism;
(ii) The proposed project presents IFC with an opportunity offer solution-driven value the bank;
(iii) Best practice - The transaction will help entice best practices for distressed assets collection and resolution; and
(iv) Market Support - The vast number of opportunities for distressed assets investments in the United States and Western Europe is significantly crowding out other regions, including Asia. Through this project, IFC would support the appropriate evolution of the regional distress assets market, and hence contribute to the stability of the financial industry.

This project involves creating a SPV to purchase and service a pool of non-performing assets and has been classified as a Category FI according to IFC’s Environmental and Social Review Procedure. During appraisal, Altus or the servicer will need to provide information pertaining to the pool''s exposure to the activities on IFC''s FI Exclusion List as well as information on any unresolved social and environmental issues or high risk projects in the pool. If the review indicates that the pool is broadly in compliance with IFC E&S requirements, the SPV servicer will be required to follow international best collection practices and to establish a Social & Environmental Management System (SEMS), satisfactory to IFC and prior to IFC commitment, to work with the borrowers and (the bank where needed; the bank is in the process to develop and implement its own SEMS) to achieve compliance with the IFC Exclusion List, applicable national E&S laws and regulations, and where necessary IFC’s Performance Standards. The asset service company is also required to submit a periodic report to IFC as per a format to be prescribed by IFC.