WCS COVID CSME

completed

The proposed project entails an IFC investment of up to PHP250 million (US$5 million equivalent) in a one-year, renewable senior loan) to CARD SME Bank, Inc. (“CARD SME” or “the Bank”) with at least 65 percent of the loan being targeted at women and women-owned businesses. The investment aims to support the Bank’s working capital lending program to its micro, small and medium clients impacted by Covid-19 (the Project).The Project is expected to be supported by the Women Entrepreneurs Finance Initiative (We-Fi) in the form of a performance-based incentive (“PBI”) of up to 0.2% of the total project cost of PHP 250 million to incentivize on-lending of the proposed working capital loans to women and women-owned/women-led enterprises.  The estimated subsidy provided by We-Fi assumes that the Project will fully reach the agreed impact and shall only be paid out upon achievement of the pre-defined gender target. We-Fi is a multi-donor initiative to address barriers to financial access and provide related services that address public and private-sector constraints to women entrepreneurs and women-led SMEs across the developing world, thereby promoting jobs and boosting economic growth.Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blendedfinance. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017.  Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: http://www.ifc.org/blendedfinance. To support this increase in trade volumes at this most critical time, IFC is starting this support through existing clients while remaining open to engaging with other eligible financial institutions providing working capital in emerging markets.