MANILA, Philippines - The International Finance Corp. (IFC), the World Bank’s private sector financing arm, is looking at the possibility of increasing its stake in Banco de Oro Unibank and Rizal Commercial Banking Corp. (RCBC), an official said.
IFC resident representative to Manila Jesse Ang said, “we are always looking for opportunities to increase our equities.”
Ang said IFC is allowed to invest up to 20 percent in a financial institution.
In 2010, IFC bought $150 million worth of equity in BDO, a universal bank owned and managed by the family of retail tycoon Henry Sy. Sr., to spur the lending program of the unibank to small and medium enterprises (SMEs).
IFC investment in BDO was made through the IFC Capitalization Fund and the IFC. The IFC invested $22.5 million and the IFC Capitalization Fund agreed to invest $127.5 million.
In 2002, IFC also invested $20 million in BDO.
IFC, on the other hand, owns $50 million worth of shares or 6.7 percent in RCBC.
Ang said they are also looking at other banks for possible investment.
“Yes, we are eyeing other banks. If there would be opportunities, we will look at them,” he said.
Aside from BDO and RCBC, IFC also invested some P1 billion in equity, loans and grants in Planters Development Bank in 2000. Planters Bank is owned by the family of Amb. Jesus Tambunting.
IFC’s investment in Planters Bank is also aimed at boosting the SME sector.
IFC is the largest global development institution focused exclusively on the private sector.
In 2011, IFC invested some $12.2 billion in 518 projects. It also mobilized an additional $6.5 billion to support the private sector in developing countries.