PNGLQF BSP (IFC-38243)

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 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
Proposed
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
May 16, 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)
$ 100.00 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)
$ 100.00 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 29, 2018

Disclosed by Bank Apr 15, 2016


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Project Description

The project is to provide a loan facility for an amount of up to US$100 million to Bank of South Pacific Limited (“BSP” or the “Bank”) to facilitate the Bank’s mid-size corporates and SME private sector customers’ international trade finance transactions.

The project is expected to strengthen BSPs ability to support its clients in the SME and mid-sized corporate segments by providingaccess to foreign currency, especially in a time of limited availability, in order to continue trade transactions primarily in the sectors such as basic agro commodities, consumer goods and wholesale and retail trade.

Investment Description
  • International Finance Corporation (IFC)

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 18.03% 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.

BSP is listed in PNG Stock Exchange in 2003 and rated ‘B+’ long-term and ‘B’ short term ratings outlook by S&P.

Private Actors

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 18.03% 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.

BSP is listed in PNG Stock Exchange in 2003 and rated ‘B+’ long-term and ‘B’ short term ratings outlook by S&P.

Contact Information

Robin Fleming
Chief Executive Officer, Bank of South Pacific
PO Box 78 Port Moresby, NCD,
Papua New Guinea
Tel: +675-322-9168
Fax: +675-320-2683
Email: rfleming@bsp.com.pg
Web: 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/