25 Jun 2010

BSP to benefit from $140 million injection

8:46 am on 25 June 2010

The commercial branch of the World Bank, the International Finance Corporation, is to invest 140 million US dollars in PNG's Bank South Pacific to help expand financial services and bolster the bank's presence across the Pacific islands.

IFC is supporting the bank's long-term growth plans by buying a five percent stake from the Independent Public Business Corporation of Papua New Guinea, a government-owned investment body.

The IFC Capitalization Fund is acquiring another five percent of shares by subscribing to newly issued shares of BSP.

The total share purchase will be for up to $110 million.

In addition, IFC is providing a long-term $30 million senior loan, enabling BSP to participate more fully in foreign currency lending opportunities.

Ian Clyne, BSP's Managing Director, says IFC's financial commitment reflects its confidence in the bank's strength and growth strategy.

Karin Finkelston, the IFC Director for East Asia Pacific says it is pleased to partner with BSP to help extend financial services to customers who may otherwise not be able to obtain the financing needed to do business and improve living standards.