Republic Bank Credit Line

completed

The project consists of a credit line of up to US$40 million to Republic to provide medium to long-term financing to productive projects operating in a variety of sectors in T&T and other IFC member countries of the Caribbean. Currently, Republic’s long term funding is scarce, forcing the bank to rely on its capital, or take the maturity risk or raise investment funds from third party private sources in order to finance longer-term projects. This results in maturity mismatch or lost opportunities for Republic in face of growing demands to finance projects in industry, private infrastructure and tourism. By way of this investment, IFC would finance Republic''s current project pipeline, reducing the bank''s maturity mismatch and enhancing environmental as well as financial management, i.e. better asset/liability management at the bank. The credit line would provide much-needed long-term financing for projects in T&T and throughout the Eastern Caribbean region and would accrue the following benefits: longer loan tenor, broader clientele, expansion of SME lending and portfolio diversification. Moreover, IFC would demonstrate its confidence in the T&T financial system, raising the environmental awareness and leveling the playing field within the banking sector. Strengthening the financial sector in the country is one of the World Bank Group''s priorities and IFC''s collaboration with a major local bank would be important in this effort, as the project would establish a foundation for other IFC financial markets development work in the country and region.