📋 Tender Overview
Project Number: 46272
Company Name: Tonga Development Bank
Date SPI Disclosed: Feb 13, 2024
Country: Tonga
Region: East Asia and the Pacific
Projected Board Date: Mar 15, 2024
Environmental Category: FI-2
Status: Active
Department: CF4S4 - Regional Industry - FIG Asia & Pac/FIG Inv Ops East Asia & Pacific
Industry: Financial Institutions
Sector: Commercial Banking - General
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$3.0 million equivalent in Tongan Pa’anga. The RSF will cover up to 50% of the credit risk on a portfolio of loans to very small enterprises (VSEs) and small and medium enterprises (SMEs) to be originated by Tonga Development Bank (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 the Bank’s liquidity position, through the de-risking product, to support underserved SMEs, including those in the tourism sector.
Total Project Cost and amount and nature of IFC's Investment: The IFC investment consists of an unfunded RSF to support the Bank’s SME lending for a maximum total SME loan portfolio of US$6.0 million equivalent in Tongan Pa’anga. IFC’s maximum risk exposure under the RSF will be up to US$3.0 million equivalent in Tongan Pa’anga.
Financing Sources:
2) World Bank (WB)
1818 H Street, NW Washington,
DC 20433 USA
Tel : (202) 473-1000
https://www.worldbank.org/
