PlantersBank

completed

Summary Of Project Information (SPI)Project NamePhilippines - PlantersBankRegionEast Asia and PacificSectorProject No009714Projected Board DateJanuary 24, 2000Company NamePlanters Development BankTechnical Partner and/or Major Shareholders Plantersbank is owned 66.0% by the Tambunting family, 9.0% by Asian Development Bank (ADB) and 19% by Netherlands Development Finance Company (FMO). The remaining 5.5% of the shares are held by two local institutions, namely Development Bank of the Philippines (DBP) and Land Bank of the Philippines and other private individuals. Project Cost Including proposed IFC investment US$ 25 million equivalent.The IFC investment would consist of: (i) a variable rate loan of US$ 15 million for 7 years.(ii) a swap equivalent exposure of up to US$2.25 million to swap the variable $ loan into a fixed peso loan (intermediated by IFC)(iii) a convertible preferred share subscription of Pesos 400 million (US$ 10 million equivalent). Location of project and Description of site PlantersBank is based in Manila, but has nationwide reach with half of its financing taking place outside Metro Manila.Description of Company and Purpose of Project The project entails a US$15 million senior loan and US$10 million-equivalent convertible investment to recapitalize and strengthen PlantersBank. As the Philippines emerges from the recent economic crisis, there is significant unsatisfied demand for term financing by SMEs which PlantersBank intends to meet. Founded in 1961, PlantersBank is the leading private Philippine development bank focused on lending to Small and Medium Scale Enterprises (SMEs). PlantersBank is the largest independent thrift bank in the Philippines, that has built a strong niche in providing term funding to SMEs.Environmental Category and Issues This is a Financial Intermediary (FI) Type 1/Type 2 project according to IFC''s environmental review procedure. PlantersBank would be required to undertake an environmental review of its projects to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and, if applicable, World Bank Group environmental, health and safety guidelines. IFC will assess PlantersBank''s capability to carry out environmental reviews. PlantersBank must obtain IFC clearance prior to making any investment with IFC funds in any Category A project.The is from the InfoShop.Date SPI sent to InfoShop December 23, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).