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SYNDICATED CREDIT LINE TO PHILIPPINE BANK —For Onlending to Infrastructure and Industrial Projects—

WASHINGTON, D.C., Sept. 15—The International Finance Corporation (IFC) signed agreements in Hong Kong today to provide a syndicated credit line of up to US$75 million to Far East Bank and Trust Company (FEB) of the Philippines for onlending to private sector infrastructure and industrial projects, such as small power plants, telephone land lines, satellite telecommunication systems, transportation systems, and plant expansions.
IFC’s investment consists of a US$25 million loan for its own account and a US$50 million syndicated loan for the account of participants. The syndicated loan was jointly arranged by IFC and Sakura Finance Asia Limited (the "arrangers"). Syndication was successfully closed with participation from six Japanese banks and three European banks, including The Sakura Bank, Limited; Credit Lyonnais; The Dai-Ichi Kangyo Bank, Limited; The Mitsubishi Trust and Banking Corporation; Mitsui Trust Finance (Hong Kong) Limited; Dresdner Kleinwort Benson; Kredietbank Project Finance; The Norinchukin Bank; and The Tokai Bank, Limited.
The credit line will provide long-term U.S. dollar funding to FEB and is expected to encourage sound funding practices for commercial banks in the country. It will also consolidate FEB’s position as one of the leading lenders and arrangers of financing for private infrastructure projects in the Philippines.
FEB is the sixth largest commercial bank in the Philippines in terms of total assets. Its main focus is the corporate to middle market sectors. As a full service bank, it is a player in most segments of the Philippine financial markets.
Sakura Finance Asia Limited is a wholly owned merchant banking arm of The Sakura Bank, Limited. It has been offering a wide range of financial services in the Asia Pacific regions. The main business areas cover loan syndication, project financing, aircraft financing, underwriting, securities and investment management.
Mr. Javed Hamid, Director, Asia I Department, IFC, said, "We are very pleased that the resources provided and mobilized by IFC will benefit private infrastructure projects through the provision of critical long-term funding. The structuring of the credit line, through the syndicated loan program, allows mobilization of funds with a longer grace period than participants would otherwise have been willing to extend."
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.