BSP PNG A Loan (IFC-37706)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • Papua New Guinea
Where the impacts of the investment may be experienced.
Specific Location
Fiji, Samoa, Cook Islands, the Solomon Islands, Vanuatu and Tonga
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 9, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
BANK OF SOUTH PACIFIC LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2018

Disclosed by Bank Mar 21, 2016


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Project Description

According to IFC website, the investment is for IFC to provide a 5-year tenor A loan amounting US$ 30 million to Bank South Pacific Limited channeled to RMA Financial Services (Cambodia) Plc to support RMA FS Cambodia’s portfolio growth. RMA FS Cambodia will soon be renamed to BSP Finance (Cambodia) Plc.

IFC's role is expected to encompass the following: (i) providing the Bank with a long-term USD loan to underpin their long-term strategy in Asia Pacific region especially in PNG and Cambodia both of which are IDA countries; (ii) demonstrating confidence in and support for the largest and indigenous bank in PNG implementing its long-term strategic goals of expansion to other region; and (iii) increasing access to finance for agriculture related businesses in Cambodia, which is important sector for the country's economy, generating 70% of employment and contributing to more than 30% of the country's GDP and yet vulnerable due to poor business environment and little investment.

Investment Description
  • International Finance Corporation (IFC)

Bank South Pacific Limited
BSP is a major commercial banking and finance group across Pacific, offering various banking services from personal banking to SME and Corporate banking. It was established in 1957 in Port Moresby as a branch of the National Bank of Australasia Limited. In 1995 a consortium of Papua New Guinea (“PNG”) businesses acquired the bank creating the first and only PNG private sector owned bank. Bank South Pacific purchased the State Owned - PNG Banking Corporation (PNGBC - formerly CBA PNG) in 2002 creating the largest Bank in PNG.

The largest shareholder is Kumul Consolidated Holding Ltd, a state-owned corporation that acts as the government’s investment vehicle, holding 18.01% of ownership followed by Nambawan Super Ltd., a corporate trustee, with 12.30% ownership. IFC and IFC Capitalisation Fund LP hold altogether 9.74% of ownership in the Bank, with equal shareholding. Each of the remaining shareholders holds less than 10% shares ownership and most of them are local funds and companies, as well as individual shareholders who have subscribed to the listed shares of the Bank on PNG Stock Exchange.

RMA Financial Services (Cambodia) PLC
RMA FS Cambodia is a privately owned leasing company established in Cambodia in 2013, with a focus on asset finance for local commercial vehicles and light agriculture machineries for SMEs. The Company is 50 percent owned by the Bank while the remaining 50 percent of the stake in RMA FS Cambodia is owned by Devco Capital Limited, a company in Hong Kong, which is ultimately owned by RMA Holdings LLC, a company based in the United States (collectively “RMA Group”). The majority of RMA Holdings LLC is owned by the Whitcraft family. The RMA Group is an internationally diversified company providing products and services for clients operating in challenging markets.

Private Actors

The Bank of South Pacific Limited is a major commercial banking and finance group across Pacific, offering various banking services from personal banking to SME and Corporate banking. It was established in 1957 in Port Moresby as a branch of the National Bank of Australasia Limited. In 1995 a consortium of Papua New Guinea (“PNG”) businesses acquired the bank creating the first and only PNG private sector owned bank. Bank South Pacific purchased the State Owned - PNG Banking Corporation (PNGBC - formerly CBA PNG) in 2002 creating the largest Bank in PNG.

Contact Information

Project Contact: Robin Fleming
Chief Executive Officer, Bank of South Pacific
Office Address: PO Box 78, Port Moresby, NCD, Papua New Guinea
Telephone No.: +675-322-9168
Fax No.: +675-320-2683
Email Address: rfleming@bsp.com.pg
Website: http://www.bsp.com.pg

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/