CARD Banks' Loan

completed

The Project is to provide a senior loan of up to PHP700 million (US$16 million equivalent) to CARD Bank, Inc. (“CARD Bank”) and CARD SME Bank, Inc. (“CARD SME”), of which (i) up to PHP540 million (US$12 million) to CARD Bank and (ii) up to PHP160 million (US$4 million) senior loan to CARD SME, with maturity of up to 7 years (including 1 year grace period). Both CARD Bank and CARD SME are important lenders to the underbanked rural MSME sector in the Philippines. Through the investment IFC will support CARD Bank and CARD SME to expand their services in order to provide micro finance solutions to small businesses and individuals in rural areas.CARD Bank, Inc. was set up in September 1997 and now is the largest microfinance institution in the Philippines with a customer base of 1.4 million of which around 90% are women. CARD Bank offers a range of products for the micro-entrepreneurs such as savings and loan products and micro-insurance through a distribution network of 61 branches/area/regional offices and 380 office units/service units throughout the country as of March 2015. CARD SME Bank, Inc. formerly known as the Rural Bank of Sto. Tomas (Batangas), Inc. (RBSTI), started operations in 1962. CARD SME’s customers are comprised primarily of customers who have “graduated” from the microfinance bank, CARD Bank. CARD SME helps facilitate the transition of these micro-entrepreneurs to small businesses and addresses a gap not being filled by the commercial banks, as these microfinance clients build capacity and eventually graduate to SMEs. CARD SME also services the micro-entrepreneurs in the area where CARD SME’s branches are located. As of March 2015, CARD SME had 11 branches/area/regional offices and 120 office units/service units servicing 228 thousand clients.