- IFC's first investment dedicated to supporting Ukrainian Forcibly Displaced Persons (FDPs)
Madrid, Spain, September 27, 2023—IFC is partnering with Santander Bank Polska S.A. (SPL) to launch its first investment aimed at assisting Ukrainian Forcibly Displaced Persons (FDPs) as well as Ukrainian FDP-owned and FDP-inclusive smaller businesses in Poland.
IFC is offering around $17 million as a second-loss guarantee for consumer loans at SPL. That will enable the bank to free up capital and issue about $100 million in new loans aimed at improving financial access for forcibly displaced Ukrainians and micro, small and medium size businesses in Poland owned by FDPs, or that are inclusive of FDPs in their management and staff.
In addition, SPL's loans will specifically target women forced to leave Ukraine and women-owned smaller businesses, who will receive at least 30 percent of the new loans. Since Russia's invasion of Ukraine, Poland has welcomed more than 1.7 million Ukrainian FDPs, almost half of whom have found a job, and Ukrainians registered close to 30,000 new businesses in Poland.
"Thanks to the guarantee, we can release capital and thus expand lending to Ukrainian retail and SME customers in Poland. We are glad that this is another initiative with the IFC that allows us to provide even stronger support to the growth of the Polish economy," said Maciej Reluga, Management Board Member at SPL.
The investment consists of a synthetic risk transfer (SRT) transaction where IFC provides a guarantee to SPL on a portion of its eligible consumer loan portfolio. It marks IFC's first investment to boost financial inclusion for Ukrainian FDPs, as well as IFC's first SRT aimed at supporting FDPs globally.
"IFC continues to be a strong supporter of the Ukrainian people, whether they aim to rebuild their lives and businesses in their home country or have been forced to do so elsewhere," said Alfonso Garcia Mora, IFC's Vice President for Europe, Latin America and the Caribbean. "With this groundbreaking investment, we aim to make more financing available to forcibly displaced Ukrainians and support their entrepreneurial activities in Poland."
IFC has a highly successful track record of impactful investments with SPL, which is a member of Santander Group. IFC's cooperation with SPL since 2016 includes a €150 million loan for SPL's leasing subsidiary dedicated to financing women entrepreneurs, the first subordinated green bond in Poland totaling $150 million, and the first SRT facility in emerging markets with a climate risk mitigation objective.
Forcibly displaced persons indicate all those who have been forced or obliged to flee or leave their homes or places of habitual residence (whether within their own country or across an international border), as a result of, or in order to avoid, the effects of armed conflict, situations of generalized violence, violations of human rights, or natural or human-made disasters based on UNHCR.
About Santander Bank Polska S.A.
Santander Bank Polska Group is one of the largest financial groups and the largest bank with private capital in Poland. It offers modern financial solutions for individuals, micro, small and medium-sized companies and international corporations. SBP has stable sources of funding, a solid capital and liquidity base and a diversified asset portfolio. The Bank is one of the market leaders in the use of modern technologies in banking services, consistently building its brand in line with its strategic objective of becoming the best bank for the customer. Santander Bank Polska's priority is customer satisfaction and loyalty. That is why the Bank regularly implements innovative functionalities that help to take care of personal finances and effectively manage a company. Since 2011, the bank has been part of the international Santander Group.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/SocialMediaIndex
www.instagram.com\ifc_org
