Summary of Proposed Investment
Project Number
9714
Company Name
PlantersBank Mortgage Securitization
Date SPI Disclosed
Dec 23, 1999
Country
Philippines
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
B - Limited
Previous Events
Approved : May 11, 2000
Signed : Jul 12, 2000
Invested : Jul 21, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Philippines - PlantersBank |
RegionEast Asia and Pacific
Sector
Project No009714
Projected Board DateJanuary 24, 2000
Company NamePlanters Development Bank
Technical Partner and/or Major Shareholders
Plantersbank is owned 66.0% by the Tambunting family, 9.0% by Asian Development Bank (ADB) and 19% by Netherlands Development Finance Company (FMO). The remaining 5.5% of the shares are held by two local institutions, namely Development Bank of the Philippines (DBP) and Land Bank of the Philippines and other private individuals.
Project Cost Including proposed IFC investment
US$ 25 million equivalent.
The IFC investment would consist of:
(i) a variable rate loan of US$ 15 million for 7 years.
(ii) a swap equivalent exposure of up to US$2.25 million to swap the variable $ loan into a fixed peso loan (intermediated by IFC)
(iii) a convertible preferred share subscription of Pesos 400 million (US$ 10 million equivalent).
Location of project and Description of site
PlantersBank is based in Manila, but has nationwide reach with half of its financing taking place outside Metro Manila.
Description of Company and Purpose of Project
The project entails a US$15 million senior loan and US$10 million-equivalent convertible investment to recapitalize and strengthen PlantersBank. As the Philippines emerges from the recent economic crisis, there is significant unsatisfied demand for term financing by SMEs which PlantersBank intends to meet. Founded in 1961, PlantersBank is the leading private Philippine development bank focused on lending to Small and Medium Scale Enterprises (SMEs). PlantersBank is the largest independent thrift bank in the Philippines, that has built a strong niche in providing term funding to SMEs.
Environmental Category and Issues
This is a Financial Intermediary (FI) Type 1/Type 2 project according to IFC''s environmental review procedure. PlantersBank would be required to undertake an environmental review of its projects to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and, if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess PlantersBank''s capability to carry out environmental reviews. PlantersBank must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.
The is from the InfoShop.
| Date SPI sent to InfoShop | December 23, 1999 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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