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Manila, March 9, 2011—
IFC, a member of the World Bank Group, today agreed to purchase an equity stake in Rizal Commercial Banking Corporation common shares worth around $48.4 million to help increase the Philippine bank’s lending to small and medium enterprises and underserved communities.
The investment will help RCBC expand to frontier areas outside of Metro Manila where reaching microfinance clients and consumers, especially in low-cost housing, is particularly important.
“We have always considered our microfinance business to be a strong complement to the commercial bank’s lending operations and we recognize the endless opportunities awaiting us in the sectors it serves,” said Lorenzo V. Tan, RCBC President and CEO. “However, as in all of the steps we take for RCBC, we want to ensure proper execution and stringent risk management in our microfinance lending activities.”
RCBC plans to improve the distribution network of its more than 350 branches nationwide. This will support the growth of retail financial services, particularly for micro, small, medium enterprises that account for over 98 percent of total employment in the Philippines.
“This investment helps open up new business areas for RCBC while helping the poor,” said Jesse Ang, IFC Resident Representative. “It also contributes to strengthening the local banking sector by providing long-term support and raising the comfort level of international investors in committing capital to the Philippines.”
RCBC will also be able to tap into IFC’s global expertise as it further improves its corporate governance, risk management, and environmental and social policies and processes.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About RCBC
Rizal Commercial Banking Corporation (RCBC) is among the largest private domestic commercial banks in the Philippines today. It is ranks among the country’s top-five banks in terms of loans, deposits, and capital. RCBC invests in various financial subsidiaries to ensure that it can provide the services needed by its diverse market, which includes large corporations, small and medium enterprises, high-net worth individuals, the growing middle-income consumer market, Overseas Filipino Workers and the C Market. For more information, visit
www.rcbc.com
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