According to the bank's website, "The proposed Project is an up to US$40 million (under two separate tranches) Working Capital Solutions (WCS) facility to be extended to The City Bank Limited (“City Bank” or the “Bank”) in Bangladesh, under the FIG COVID-19 Emergency Response WCS Envelope (WCS Envelope). The WCS Envelope is designed to provide funding to existing IFC client banks in emerging markets that will then extend new trade-related or working capital loans to companies whose cash flows have been disrupted by the global outbreak of the coronavirus pandemic. This proposed Project is a one-year facility, renewable for an additional one year, for a maximum aggregate tenor of two years.
This Project will support working capital, trade finance and FX liquidity needs of the sub-borrowers (export/import-based SMEs and Corporates) through City Bank’s Off-Shore Banking Unit. In addition, IFC as implementing entity of the IDA Private Sector Window (PSW) Blended Finance Facility is expected to support working capital loans in PSW eligible countries under the WCS Facility with a first loss guarantee of up to US$215 million (“blended concessional finance co-investment”). Without the de-risking provided by IDA PSW, IFC will be limited in its ability to support Working Capital loans in IDA PSW countries given the increased demand for financing and the high risk in IDA PSW countries. This support is targeted in the context of responding and helping with the resilience measures around COVID-19 crisis."
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
According to IFC, "Incorporated in 1983, City Bank is one of the leading private commercial banks in Bangladesh with a total asset of US$4.1 billion as of December 31, 2019. With a universal banking model, City Bank is offering full range of banking products and services to the corporate, MSME and retail customers. The Bank is rated B1 by Moody’s, and its shares are listed on both of the local bourses. City Bank is IFC’s existing commercial banking client in Bangladesh and has a track record of working in multiple investment and advisory projects with IFC. IFC is a shareholder of City Bank since 2017. As of February 2020, City Bank’s shareholding is – sponsor/director: 27.9%, local institutions: 20.6%, foreign shareholders: 9.5% and general public: 42.0%."
THE CITY BANK LIMITED
Sheikh Mohammad Maroof
Additional Managing Director and Head of Wholesale Banking, Trade Services, SME- Small & Micro Finance
+8802 8834767, Ext-1331
136, Gulshan AvenueGulsha-2, Dhaka-1212
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/