📋 Tender Overview
Project Number: 47117
Company Name: SLGP Credit Corp PNG
Date SPI Disclosed: May 13, 2024
Country: Papua New Guinea
Region: East Asia and the Pacific
Projected Board Date: Jun 17, 2024
Environmental Category: FI-2
Status: Pending Approval
Department: CF4E1 - Regional Industry - FIG Asia & Pac/FIG South East Asia & Pacific
Industry: Financial Institutions
Sector: Other Non-Banking Financial Institution (NBFI)
Project Description
The proposed investment consists of an unfunded Risk Sharing Facility ( RSF ) with a maturity of up to 8 years in an amount of up to US$7.5 million equivalent in Papua New Guinea (PNG) Kina through Credit Corporation Finance Limited (the Company or CCFL ). The RSF will cover up to 50% of the credit risk on the portfolio in an amount of up to US$15 million equivalent of loans to very small enterprises (VSE) as well as small and medium enterprises (SMEs) to be originated by CCFL (the Project ). The proposed Project would come under the Small Loan Guarantee Program ( SLGP ), a programmatic approach to risk sharing which aims to enhance and strengthen the capacity of financial institutions for risk taking and financing of SMEs in IDA-PSW countries. The Project seeks to leverage CCFL’s liquidity position, through the de-risking product, to support underserved SMEs.
Total Project Cost and amount and nature of IFC's Investment: The IFC investment consists of an unfunded RSF to support the CCFL’s SME lending for a maximum total SME loan portfolio of US$15.0 million equivalent in PNG Kina. IFC’s maximum risk exposure under the RSF will be up to US$7.5 million equivalent in PNG Kina.
Financing Sources:
2) World Bank (WB)
1818 H Street, NW Washington,
DC 20433 USA
Tel : (202) 473-1000
https://www.worldbank.org/
