Manila, Philippines, April 19, 2010
—IFC, a member of the World Bank Group, and IFC Capitalization Fund have agreed to help strengthen the Philippine banking sector and assist the country’s economic recovery by investing $150 million in equity in BDO Unibank, Inc., one of the Philippine’s key financial institutions.
The support for BDO is the first investment by the IFC Capitalization Fund in Asia and the first equity capital raising among Philippine top tier banks in three years. IFC agreed to invest $22.5 million and the IFC Capitalization Fund agreed to invest $127.5 million in newly issued common shares of BDO.
“IFC’s investment will support BDO’s stepped-up efforts to offer financing to small and medium enterprises that are the backbone of the Philippine economy, helping bolster the economic recovery and job security,” said Karin Finkelston, IFC’s Director for East Asia and the Pacific. “It will also support BDO in building its position in financing infrastructure development in the Philippines on a sustainable basis.“
The Philippines is slowly emerging from the global financial crisis after economic growth fell below one percent in 2009, down from an average annual growth rate of more than five percent between 2000 and 2008.
The $3 billion IFC Capitalization Fund, founded by IFC and the Japan Bank for International Cooperation (JBIC), is a global equity and subordinated debt fund that aims to support banks considered vital to the financial system of an emerging market country. By supporting systemic institutions, the fund aims to speed up economic recovery and boost job creation while reducing the impact of the financial crisis. The fund is managed by IFC’s Asset Management Company.
“We are pleased that the IFC Capitalization Fund is making its first investment in Asia,” said Gavin Wilson, CEO of the IFC Asset Management Company. “We look forward to working with BDO management to help expand value further in this important institution.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About IFC Asset Management Company
The IFC Asset Management Company LLC (AMC) is a subsidiary of IFC and was established to manage third party capital in the form of private equity funds. The AMC mobilizes third party capital and allows outside investors to benefit from IFC’s expertise in achieving strong equity returns as well as development impact. It also manages the IFC Capitalization Fund.
About Japan Bank for International Cooperation
JBIC is the international wing of the Japan Finance Corporation (JFC), Japan’s policy-based financing institution established on October 1, 2008. It succeeded International Financial Operations of former JBIC and will continue to use the name of JBIC to maintain international trust and confidence it has gained. JBIC provides policy-based finance with a mission to contribute to the sound development of the Japanese and international economy, including finance responding to disruptions in financial order in the international economy. For more information, visit
www.jbic.go.jp
.
