Banco BHD Credit Line

completed

The project would provide scarce long-term funding for Dominican middle-market companies seeking to expand, modernize and otherwise improve their international competitiveness. By supporting middle-market enterprises, IFC would be helping to improve the economy and strengthen an important job-creating sector. This project would be IFC''s first financial sector initiative in the Dominican Republic. IFC''s engagement in the financial sector will be important in helping transfer international best practices, particularly in terms of corporate governance and risk management, to the country. By providing a leading local bank with long-term funding for on-lending to viable middle-market companies, IFC will help to meet a strong demand for long-term funds by a large segment of the country''s corporate sector. Through its environmental requirements for sub-projects, IFC will enhance the Bank''s ability to assess and mitigate environmental risk, while impacting favorably on sub-borrowers'' environmental management capability and awareness. In addition, IFC will provide the Bank with capital support in the form of a subordinated loan for Tier II capital purposes; this is the first time that such an instrument will be provided in the Dominican Republic following the enactment of a new law allowing banks to obtain Tier II capital.