Manila, Philippines, April 19, 2010—IFC,
a member of the World Bank Group, and IFC Capitalization Fund have agreed
to help strengthen the Philippine banking sector and assist the country’s
economic recovery by investing $150 million in equity in BDO Unibank, Inc.,
one of the Philippine’s key financial institutions.
The support for BDO is the first investment by the IFC Capitalization Fund
in Asia and the first equity capital raising among Philippine top tier
banks in three years. IFC agreed to invest $22.5 million and the IFC Capitalization
Fund agreed to invest $127.5 million in newly issued common shares of BDO.
“IFC’s investment will support BDO’s stepped-up efforts to offer financing
to small and medium enterprises that are the backbone of the Philippine
economy, helping bolster the economic recovery and job security,” said
Karin Finkelston, IFC’s Director for East Asia and the Pacific. “It will
also support BDO in building its position in financing infrastructure development
in the Philippines on a sustainable basis.“
The Philippines is slowly emerging from the global financial crisis after
economic growth fell below one percent in 2009, down from an average annual
growth rate of more than five percent between 2000 and 2008.
The $3 billion IFC Capitalization Fund, founded by IFC and the Japan Bank
for International Cooperation (JBIC), is a global equity and subordinated
debt fund that aims to support banks considered vital to the financial
system of an emerging market country. By supporting systemic institutions,
the fund aims to speed up economic recovery and boost job creation while
reducing the impact of the financial crisis. The fund is managed by IFC’s
Asset Management Company.
“We are pleased that the IFC Capitalization Fund is making its first investment
in Asia,” said Gavin Wilson, CEO of the IFC Asset Management Company.
“We look forward to working with BDO management to help expand value further
in this important institution.”
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
About IFC Asset Management Company
The IFC Asset Management Company LLC (AMC) is a subsidiary of IFC and was
established to manage third party capital in the form of private equity
funds. The AMC mobilizes third party capital and allows outside investors
to benefit from IFC’s expertise in achieving strong equity returns as
well as development impact. It also manages the IFC Capitalization Fund.
About Japan Bank for International Cooperation
JBIC is the international wing of the Japan Finance Corporation (JFC),
Japan’s policy-based financing institution established on October 1, 2008.
It succeeded International Financial Operations of former JBIC and will
continue to use the name of JBIC to maintain international trust and confidence
it has gained. JBIC provides policy-based finance with a mission to contribute
to the sound development of the Japanese and international economy, including
finance responding to disruptions in financial order in the international
economy. For more information, visit www.jbic.go.jp.