BSP PNG A Loan (IFC-37706)

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
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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 9, 2016
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
BANK OF SOUTH PACIFIC LIMITED
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)
$ 30.00 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.
Loan Amount (USD)
$ 30.00 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.
Project Cost (USD)
$ 30.00 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 25, 2018

Disclosed by Bank Mar 21, 2016

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

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.

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.

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
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.

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/

How it works

How it works