SLGP Credit Corp PNG (IFC-47117)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Papua New Guinea
Geographic location where the impacts of the investment may be experienced.
Specific Location
Papua New Guinea
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 17, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SLGP Credit Corp PNG
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 7.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 27, 2024

Disclosed by Bank May 13, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed investment consists of an unfunded Risk Sharing Facility (“RSF”) with a maturity of up to 8 years in an amount of up to US$7.5 million equivalent in Papua New Guinea (PNG) Kina through Credit Corporation Finance Limited (the “Company” or “CCFL”). The RSF will cover up to 50% of the credit risk on the portfolio in an amount of up to US$15 million equivalent of loans to very small enterprises (VSE) as well as small and medium enterprises (SMEs) to be originated by CCFL (the “Project”). The proposed Project would come under the Small Loan Guarantee Program (“SLGP”), a programmatic approach to risk sharing which aims to enhance and strengthen the capacity of financial institutions for risk taking and financing of SMEs in IDA-PSW countries. The Project seeks to leverage CCFL’s liquidity position, through the de-risking product, to support underserved SMEs.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The project will support CCF’s lending to very small, small and medium enterprises (VSEs and SMEs) in Papua New Guinea. The company's non-retail portfolio is mainly in such sectors as transport and logistics as well as construction and real estate. Overall E&S risks and impacts of the project is medium and, therefore, the project has been categorized as FI-2 in accordance with IFC's Sustainability Policy. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The IFC investment consists of an unfunded RSF to support the CCFL’s SME lending for a maximum total SME loan portfolio of US$15.0 million equivalent in PNG Kina. IFC’s maximum risk exposure under the RSF will be up to US$7.5 million equivalent in PNG Kina.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Credit Corporation Finance Limited - CCFL is fully owned by Credit Corporation (PNG) Limited (the “Parent” or “Credit Corporation”). Credit Corporation is listed in PNG and its shareholders largely consist of PNG-based institutional investors. Nambawan and Nasfund, two of the PNG’s largest superannuation funds and leading investors in the Pacific, are the largest shareholders, holding approximately 20% stake each.               


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Credit Corporation Finance Limited
Emily Polum
Head of Credit Risk
+675 308 5500
EPolum@creditcorporation.com.pg
Credit Corporation Finance Limited, Ground Level, Credit House Cuthbertson Street, National Capital District, Port Moresby, Papua New Guinea
https://www.creditcorporation.com.pg/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

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How it works